Cannabis stocks across North America have skyrocketed to their highest point so far this year, despite a lukewarm promise from the US President on cannabis rescheduling.
As Business of Cannabis reported earlier this week, on Monday, President Trump publicly addressed the long-stalled rescheduling project for the first time since taking office.
Coming just days after further reports from inside sources suggesting that Trump had committed to ‘look at’ the issue, he told a White House press pool: “We’re looking at it. Some people like it, some people hate it. Some people hate the whole concept of marijuana, because if it does bad for the children, it does bad for people that are older than children.
“But we’re looking at reclassification, and we’ll make a determination over the next, few weeks, and that determination, hopefully, will be the right one. It’s a very complicated subject, you know, the subject of marijuana.”
Despite his less-than-enthusiastic appraisal of the ‘complicated subject’, his recognition that there were legitimate uses for cannabis as a medicine (in so many words) was enough to send stocks flying.
“I’ve heard great things having to do with medical, and I’ve had bad things having to do with just about everything else. But medical, and, you know, for pain and various things,” he continued.
Many have also cited the acknowledgement of a prospective timeline and the fact that the administration is apparently actively considering the issue as drivers of North American cannabis stock prices.
Despite the president’s statements, objectively speaking, providing little in the way of reassurance the industry will get what it’s looking for (moving cannabis to Schedule III or full declasification), CEO’s and analysts across the sector have weighed in on the situation.
Almost all have touted the benefits rescheduling would bring to the market, easing the path for cannabis research, potentially opening the door to banking and institutional investment, and easing the heavy tax burden on cannabis operators.
Many have celebrated the ‘renewed political will’ behind rescheduling, while others, like Safe Harbor Financial’s CEO Terry Mendez, have said they hope ‘this is another moment where we hope words quickly become action’.
Veridian Capital argues that while Donald Trump is ‘first a politician, second a businessman, and nowhere on the list as a social reformer,’ cannabis reform could be a natural fit for his platform.
Cannabis is ‘the ultimate in states’ rights issues’, aligning with Trump’s long-standing support for state autonomy, while also delivering on his pro-business and cost-cutting instincts. Legalisation, they say, could ‘add billions to the economy by fostering job growth, increasing tax revenues, and reducing significant expenses in police, courts, and jails.’.
Perhaps more importantly, with the GOP reportedly in a state of panic over the midterms (evidenced by their outrageous gerrymandering efforts in Texas) cannabis ‘is an issue that Trump can steal from the Democrats and use to solidify his base’.
For now, whether the Trump administration will look upon rescheduling with favour, or use it as a political tool to crack down on the recreational industry, is anyone’s guess.
What’s certain, however, is that mainstream attention is once again being placed on the industry, having repercussions well beyond stock values.
As NewLake Capital Partners CEO and President, Anthony Coniglio, recently told Business of Cannabis: “I think we’re firmly in a ‘sell the news’ cycle right now. Over the past couple of weeks, you’ve seen influencers, even Trump-aligned influencers, posting on social media about rescheduling and saying things like, I stand with Donald Trump to move cannabis to Schedule III.
“A lot of people see that as a positive sign. Those trial balloons, that visible support on social media, do help build momentum within the administration.”
He added, though notably before this recent stock rally, that the boost in sentiment driven by increased media attention, usually results in a sell-off after values have spiked.
“People are treating these spikes as opportunities to exit. To have sustained buying power, you need sustained reform. Influencers can spark a pop, but they can’t fuel a long-term run without real policy changes.”
He suggests that while rescheduling is a major step forward, ‘a true, lasting rally would take more’.
“Rescheduling will give you that initial pop, but it doesn’t legalise cannabis federally. It doesn’t suddenly open the floodgates for capital, especially for companies with recreational businesses, which would still be illegal. It’s a positive step, yes, but not the kind that brings a rush of institutional investment.”
The post Cannabis Stocks Hit Highest Point This Year on Trump Rescheduling Hopes appeared first on Business of Cannabis.
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As Business of Cannabis reported earlier this week, on Monday, President Trump publicly addressed the long-stalled rescheduling project for the first time since taking office.
Coming just days after further reports from inside sources suggesting that Trump had committed to ‘look at’ the issue, he told a White House press pool: “We’re looking at it. Some people like it, some people hate it. Some people hate the whole concept of marijuana, because if it does bad for the children, it does bad for people that are older than children.
“But we’re looking at reclassification, and we’ll make a determination over the next, few weeks, and that determination, hopefully, will be the right one. It’s a very complicated subject, you know, the subject of marijuana.”
Despite his less-than-enthusiastic appraisal of the ‘complicated subject’, his recognition that there were legitimate uses for cannabis as a medicine (in so many words) was enough to send stocks flying.
“I’ve heard great things having to do with medical, and I’ve had bad things having to do with just about everything else. But medical, and, you know, for pain and various things,” he continued.

Many have also cited the acknowledgement of a prospective timeline and the fact that the administration is apparently actively considering the issue as drivers of North American cannabis stock prices.
Despite the president’s statements, objectively speaking, providing little in the way of reassurance the industry will get what it’s looking for (moving cannabis to Schedule III or full declasification), CEO’s and analysts across the sector have weighed in on the situation.
Almost all have touted the benefits rescheduling would bring to the market, easing the path for cannabis research, potentially opening the door to banking and institutional investment, and easing the heavy tax burden on cannabis operators.

Many have celebrated the ‘renewed political will’ behind rescheduling, while others, like Safe Harbor Financial’s CEO Terry Mendez, have said they hope ‘this is another moment where we hope words quickly become action’.
Veridian Capital argues that while Donald Trump is ‘first a politician, second a businessman, and nowhere on the list as a social reformer,’ cannabis reform could be a natural fit for his platform.
Cannabis is ‘the ultimate in states’ rights issues’, aligning with Trump’s long-standing support for state autonomy, while also delivering on his pro-business and cost-cutting instincts. Legalisation, they say, could ‘add billions to the economy by fostering job growth, increasing tax revenues, and reducing significant expenses in police, courts, and jails.’.
Perhaps more importantly, with the GOP reportedly in a state of panic over the midterms (evidenced by their outrageous gerrymandering efforts in Texas) cannabis ‘is an issue that Trump can steal from the Democrats and use to solidify his base’.
For now, whether the Trump administration will look upon rescheduling with favour, or use it as a political tool to crack down on the recreational industry, is anyone’s guess.

What’s certain, however, is that mainstream attention is once again being placed on the industry, having repercussions well beyond stock values.
As NewLake Capital Partners CEO and President, Anthony Coniglio, recently told Business of Cannabis: “I think we’re firmly in a ‘sell the news’ cycle right now. Over the past couple of weeks, you’ve seen influencers, even Trump-aligned influencers, posting on social media about rescheduling and saying things like, I stand with Donald Trump to move cannabis to Schedule III.
“A lot of people see that as a positive sign. Those trial balloons, that visible support on social media, do help build momentum within the administration.”
He added, though notably before this recent stock rally, that the boost in sentiment driven by increased media attention, usually results in a sell-off after values have spiked.
“People are treating these spikes as opportunities to exit. To have sustained buying power, you need sustained reform. Influencers can spark a pop, but they can’t fuel a long-term run without real policy changes.”
He suggests that while rescheduling is a major step forward, ‘a true, lasting rally would take more’.
“Rescheduling will give you that initial pop, but it doesn’t legalise cannabis federally. It doesn’t suddenly open the floodgates for capital, especially for companies with recreational businesses, which would still be illegal. It’s a positive step, yes, but not the kind that brings a rush of institutional investment.”
The post Cannabis Stocks Hit Highest Point This Year on Trump Rescheduling Hopes appeared first on Business of Cannabis.
Continue reading...