Canadian pot company Tilray Brands (NASDAQ: TLRY) has been preparing for marijuana legalization in the U.S. to vault its business to another level. Some news today has investors thinking federal legalization may be closer. That report sent shares of Tilray soaring more than 20% midday. As of 3:23 p.m. ET, the stock was still higher on the day by 10.5%.
Bloomberg News initially reported that a letter was sent yesterday from the U.S. Department of Health and Human Services to the Drug Enforcement Agency (DEA) asking for marijuana to be reclassified as a Schedule III drug from its current Schedule I status.
Schedule I drugs include those without medical uses such as heroin and LSD. Those classified as Schedule III drugs on the controlled substances list include Tylenol and Codeine. Tilray investors have been frustrated by a lack of progress in federal marijuana legalization. If that reclassification to a less hazardous category occurs, it could be one step closer to legalizing cannabis in the U.S.
Source Fool.com