Pot stocks pop on Schedule 3 hopes: Tilray Brands, Trulieve Cannabis, Cresco Labs: How high will they go?

Shares of publicly traded companies operating in the cannabis space continue to perform strongly as the Trump administration considers reclassifying marijuana.

Reports first emerged last week that the Trump administration might change marijuana from a Schedule I drug to a Schedule III drug, which would lessen restrictions on it.

On Monday, President Trump told reporters that he was “considering” the reclassification.

“We are considering that because a lot of people want to see it—the reclassification, because it leads to tremendous amounts of research that can’t be done unless you reclassify,” Trump stated, according to CNN. “So, we are looking at that very strongly.”

Prior to Trump’s announcement, a White House official told Fast Company that the administration had yet to make a final decision about reclassification. We have reached out to the White House about its current plans and will update this post if we hear back.

Cannabis brands see their shares rise

The potential of a reclassification has been enough to bolster shares of cannabis companies since the opening bell on Friday. Below are just some of the impressive jumps to watch.

Tilray Brands Inc. (Nasdaq:TLRY)

• Closing on Tuesday: 27.54%
• Five-day growth: 71.97%
• Premarket growth on Wednesday: 3.66%

Cresco Labs Inc (OTCQX: CRLBF)

• Closing on Tuesday: 34.93%
• Five-day growth: 123.11%
• After-hours growth: -0.23%

Canopy Growth Corp. (Nasdaq:CGC)

• Closing on Tuesday: 10.24%
• Five-day growth: 61.49%
• Premarket growth on Wednesday: 6.01%

Curaleaf Holdings Inc. (OTCQX:CURLF)

• Closing on Tuesday: 23.18%
• Five-day growth: 67.89%
• After-hours growth: 0.38%

Trulieve Cannabis Corp. (CNSX: TRUL)

• Closing on Tuesday: 12.58%
• Five-day growth: 76.40%
• After-hours and premarket: N/A

Each of these stocks are still significantly down from highs in early 2021, during the early Biden era, when marijuana reform excitement seemingly peaked.

What’s the difference between Schedule I and Schedule III?

The U.S. Drug Enforcement Administration (DEA) defines Schedule I drugs as those “with no currently accepted medical use and a high potential for abuse.” Marijuana currently sits on this list alongside heroin, ecstasy, LSD, peyote, and more.

The DEA states that Schedule III drugs are those “with a moderate to low potential for physical and psychological dependence.” Right now, that list includes anabolic steroids, ketamine, Tylenol with codeine, and testosterone.

If the change occurs, marijuana would be considered less dangerous than Schedule II drugs, which have a “high potential for abuse,” such as Adderall, cocaine, fentanyl, and Ritalin.

Reclassifying marijuana would have no impact on its federal legality.