Pot stocks fall as US drug agency to hold reclassification hearing after elections

Canopy Growth

27/08/2024 14:10

** U.S.-listed shares of cannabis firms fall in premarket
trade 
    ** Shares slide as Drug Enforcement Administration said
hearing on the proposal to reclassify marijuana to a Schedule
III drug will take place on Dec. 2, after the U.S. presidential
elections
    ** SNDL  SNDL.O  down ~1%, Organigram Holdings  OGI.O  drops
1.5%, Tilray Brands  TLRY.O  down 2.7%
    ** Shares of Cronos Group  CRON.O , Canopy Growth  CGC.O 
and Aurora Cannabis  ACB.O  fall between 4% and 4.7%
    ** ETF AdvisorShares Pure US Cannabis  MSOS.P  slides 11.3%
    ** "The news delays the process and admittedly increases
election risk, with our view that a Harris presidency would be
more favorable to rescheduling vs a Trump presidency" - Alliance
Global Partners
    ** Brokerage adds that if a final rule on the rescheduling
does not come before a new administration comes in, there could
be some risk of a change in priority of the new Attorney General
and the DEA

 (Reporting by Vallari Srivastava in Bengaluru)
 ((Srivastava.Vallari@thomsonreuters.com))