Shares in medical cannabis companies up 80% as US announce move to reclassify marijuana

US DEA aiming for most significant change on drug policy in half a century – leading to investors to snap up stock in therapeutic cannabis companies

Shares in health companies using cannabis almost doubled overnight after the US moved to declassify the drug across the country.

One company saw its value rise by 80% in the wake of the US Drug Enforcement Administration lodging an intention to shift marijuana to a Schedule III drug.

Currently in the States marijuana is classified as a Schedule I drug, on a level with heroin, LSD and ecstacy.

But moving it to a Schedule III ranking would see it be classified in a category alongside steroids, codeine and testosterone – meaning its use would be legalised under US DEA controls.

The move has seen an immediate rush for investors to back companies using cannabis for medicinal purposes – with Canopy Growth Corp seeing an 80.02% rise in share value over the course of just 24 hours.

Figures from investment platform Saxo also show Aurora Cannabis Inc benefitted from a 46.24% one day spike, and a 113.32% climb in value month-on-month.

Investors are now speculating on the medicinal and therapeutic cannabis companies making massive growth as North America and Europe continue to open up to legalising its use for health benefits.

Oskar Barner Bernhardtsen, Investment Strategist at Saxo said, “Following the recent breakthrough in the U.S. legislative framework, the momentum in the cannabis sector accelerated overnight.

“The legislative shift in the US, coupled with the foundational events of the past month—Germany’s legalisation of recreational cannabis and Senate Majority Leader Chuck Schumer’s backing of the SAFER Banking Act—has fueled an unprecedented surge in the share prices of many companies relating to cannabis.

“Specifically, some companies within our own Cannabis investment theme have seen as much as an 80% increase in stock prices overnight. This surge underscores the growing investor confidence and the potential for substantial growth in the industry.

“However, it’s crucial for investors to remain vigilant. While the sector shows promising signs of recovery and growth, the historical volatility and the complex regulatory landscape require thorough and ongoing analysis to navigate potential risks effectively.