Pot stocks rise as US unveils proposal to ease restrictions on marijuana

Archos SA

16/05/2024 19:44

(Repeats with no changes to text)
       May 16 (Reuters) - Shares of cannabis companies rose on
Thursday afternoon after the U.S. Department of Justice unveiled
a proposal to ease restrictions on marijuana, a rule if enacted
would also enable more research on its medicinal benefits.
    U.S.-listed shares of Tilray Brands  TLRY.O , Cronos Group
 CRON.O  and Canopy Growth  CGC.O  rose between 1.2% and 7.1%,
while ETF AdvisorShares Pure US Cannabis  MSOS.P  climbed 6.1%.
    Canada-listed Green Thumb Industries  GTII.CD  and Trulieve
Cannabis  TRUL.CD  were also up 5.8% and 9.1%, respectively.
    The reclassification will not legalize marijuana for
recreational use, but move the drug to a group that contains
ketamine and Tylenol with codeine. Currently, the drug falls
under the DEA's class which includes heroin and LSD.
    The U.S. Food and Drug Administration said it found "some
credible scientific support for the use of marijuana in the
treatment of chronic pain, anorexia related to a medical
condition, and nausea and vomiting."
    "We are grateful that our leaders are finally recognizing
the positive power of this incredible plant and listening to the
overwhelming majority of Americans who support legalization,"
said George Archos, founder and CEO of Verano Holdings
 VRNOF.PK .
    The public will get 60 days to submit comments on the
justice department's proposal.
    Last month, the department moved to reclassify marijuana to
Schedule III, a less dangerous drug.    

 (Reporting by Tanay Dhumal in Bengaluru; Editing by Vijay
Kishore)
 ((Tanay.Dhumal@thomsonreuters.com; Twitter: https://twitter.com/TanayDhumal;))