TLRY, CGC, ACB, MSOS Pare Early Gains After Marijuana Reclassification: Retail Says ‘Weed Industry Is Reborn’

• The change does not legalize marijuana but reduces regulatory hurdles and offers tax relief for licensed operators.
• Trump has earlier framed the move as a step toward supporting medical research, while clarifying that it does not legalize recreational use.
• The DOJ is updating procedures to speed up the rulemaking process needed to move marijuana from Schedule I to Schedule III.

Shares of Tilray (TLRY), Canopy Growth (CGC), Aurora Cannabis (ACB), and IGC Pharma Inc (IGC) remained in focus after the U.S. Department of Justice formally moved to reclassify state-licensed medical marijuana as a less dangerous drug, four months after President Donald Trump signed an executive order to shift it from Schedule I to Schedule III.

After rallying in the previous session and gaining in pre-market trading on Thursday, the stocks fell in morning trade. At the time of writing, TLRY, CGC, ACB and IGC fell between 2-5%. 

Meanwhile, AdvisorShares Pure US Cannabis ETF (MSOS) fell 5.5%.

DOJ To Update Rulemaking Processes For Reclassification

While the change does not legalize marijuana, it reduces regulatory hurdles, offers tax relief for licensed operators, and makes research easier. Schedule III drugs are considered to have a moderate to low risk of dependence. Trump has earlier framed the move as a step toward supporting medical research, while clarifying that it does not legalize recreational use.

“This rescheduling action allows for research on the safety and efficacy of this substance, ultimately providing patients with better care and doctors with more reliable information,” said Todd Blanche, acting Attorney General, in a statement.

Separately, the Justice Department said it is updating procedures to speed up the rulemaking process needed to move marijuana from Schedule I to Schedule III under the Controlled Substances Act. The move is expected to expand access to medical treatments and support research, while also strengthening the legal framework for medical marijuana programs across dozens of U.S. states.

How Did Retail Traders React?

Retail sentiment on Stocktwits for TLRY, CGC, ACB, and IGC turned ‘extremely bullish,’ amid ‘extremely high’ message volumes.

One user said, “The weed industry is reborn.”

Another user said Tilray will be the “king in the U.S. cannabis market.”

Meanwhile, shares of nano-cap Akanda Corp. (AKAN) climbed 6% higher, extending a stunning 215% surge from the previous session, with investors and traders debating whether the explosive rally is driven by cannabis reclassification optimism or the stock’s low float.

Message volumes on the Stocktwits platform for the stock surged by around 48,000% over a 24-hour period.

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