Tilray, Aurora Cannabis, Trulieve Pull Back After Trump Marijuana Order Rally Runs Out Of Steam

• Trump is seeking to move marijuana from a schedule 1 drug to a schedule 3 drug, from the levels of heroin, down to the levels of tylenol. 
• The executive order directs Trump’s administration to initiate the steps needed for the classification shift.

Shares of Tilray Brands, Aurora Cannabis and Trulieve Cannabis pulled back on Thursday after an early rally sparked by U.S. President Donald Trump’s executive order to ease federal restrictions on marijuana lost momentum, as investors pared gains following the initial reaction to the policy move.

Shares of TLRY and ACB fell 5% and 3% respectively at the time of writing while TCNNF dropped 17%. 

Trump Pushes Medical Marijuana

President Donald Trump on Thursday signed an executive order to reschedule marijuana to make it less restrictive and available for “legitimate medical uses.”

Trump clarified that the order is not federal legalization and does not allow for recreational use nationwide but is instead aimed at improving medical marijuana and cannabidiol research. Trump is seeking to move marijuana from a schedule 1 drug to a schedule 3 drug, from the levels of heroin, down to the levels of tylenol.

“We have people begging for me to do this, people that are in great pain for decades,” Trump said while referring to patients suffering from extreme pain and incurable diseases including cancer. The executive order directs Trump’s administration to initiate the steps needed for the classification shift.

“Schedule III status will allow research studies to incorporate real-world evidence and models that can assess the health outcomes of medical marijuana and legal CBD products while focusing on long-term health effects in vulnerable populations like adolescents and young adults,” the White House said in a statement.

State regulations on cannabis are currently complex. While a few U.S. states currently permit the recreational use of cannabis, some allow it for medical purposes.

How Did Trump Decide?

According to a report from Bloomberg, Trump came to the decision following discussions with Health and Human Services Secretary Robert F. Kennedy Jr. and Centers for Medicare and Medicaid Services Administrator Mehmet Oz as well as cannabis-industry leaders including Trulieve Cannabis Corp CEO Kim Rivers. As per the report, the Centers for Medicare & Medicaid Services is also expected to complete a plan to test making some Medicare patients eligible for therapies derived from cannabinoids.

Jazz Pharmaceuticals’ Epidiolex is currently the only drug approved by the U.S. Food and Drug Administration composed of CBD, a psychoactive compound found in cannabis.

Tilray Plans Expansion With Trump’s Push

Tilray, a producer and distributor of medical and adult-use cannabis, subsequently confirmed plans to advance its U.S. medical cannabis operations with the formation of a unit called Tilray Medical USA, Inc. The unit aims to introduce medical-grade cannabis products in targeted therapeutic formats, the company said.

“This action [executive order] aligns regulation with a vast body of scientific and medical data supporting cannabis medical use and safety, economic progress, and a healthcare-focused framework, while creating a more credible foundation for medical cannabis research, clinical development, and regulatory clarity,” Tilray CEO Irwin D. Simon said.

Other Cannabis Firms Respond To Policy Change

Cresco Labs applauded the executive order terming it a “cultural turning point” and a “historic shift.” Trulieve too applauded the decision while Scotts Miracle-Gro expressed support highlighting that 39 states already legalize cannabis in some form. Scotts expects to combine its Hawthorne Gardening company subsidiary, which provides nutrients, lighting and other supplies to legal cannabis growing operations, with a cannabis company in 2026.

High Tide said that it is exploring structures that would allow it to expand its Canna Cabana retail brand into the U.S. through licensing.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around TLRY and CGC trended in the ‘extremely bullish’ territory at the time of writing. Sentiment around AdvisorShares Pure US Cannabis ETF (MSOS), which tracks American operators, followed suit.

TLRY and CGC shares are down 8% and 39% this year, respectively. 

Also See: General Motors Eyes Ex-Tesla Employee Sterling Anderson As Potential Successor To CEO Mary Barra: Report

For updates and corrections, email newsroom[at]stocktwits[dot]com

Share

·

Add us on