Latest news with #potindustry
CTV News
7 hours ago
- Business
- CTV News
How U.S. marijuana reclassification could help cannabis companies
Cannabis clones are displayed for customers at Home Grown Apothecary in Portland, Ore. (AP Photo/Jenny Kane) U.S. President Donald Trump's administration is looking to reclassify marijuana as a less dangerous drug, a shift that could ease criminal penalties and reshape the pot industry by lowering tax burdens and making it easier for firms to secure funding. Trump said on Monday a decision could come within the next couple of weeks. U.S.-listed cannabis-linked stocks rose in pre-market trading on Tuesday, led by a 13 per cent jump in Canopy Growth. Organigram Global, SNDL, Aurora Cannabis and Tilray Brands gained between three and 12 per cent. What does reclassifying entail? Under the Controlled Substances Act, marijuana is listed as a Schedule I substance, meaning it has a high potential for abuse and no current accepted medical use. Reclassifying marijuana as a less dangerous drug could unlock banking access for pot producers, attract institutional investors, reduce tax burden and spur mergers and acquisitions. Securing funding remains one of the biggest challenges for cannabis producers, as federal restrictions keep most banks and institutional investors out of the sector, forcing pot producers to turn to costly loans or alternative lenders. Last year, the Biden administration asked the Department of Health and Human Services to review marijuana's classification, and the agency recommended moving it to Schedule III, a category for substances with a moderate to low risk of physical or psychological dependence. What would be the tax implications? One of the biggest benefits from a reclassification would be that cannabis firms would no longer be subject to Section 280E of the U.S. federal tax code. That provision prevents businesses dealing in Schedule I and II controlled substances from claiming tax credits and deductions for business expenses. What comes next? TD Cowen analyst Jaret Seiberg said full legalization remains unlikely, citing a lack of meaningful support in Congress and limits on how far the Drug Enforcement Administration (DEA) can go through rescheduling alone. 'It seems more likely to us that Trump would revive the effort at the DEA to move cannabis to Schedule III, which would permit the government to regulate it,' said Seiberg. Some analysts, however, say a reclassification will not change much. Cannabis will remain federally illegal, interstate trade will not be allowed and the silo system of each state deciding their own market rules will still apply, according to equity research firm Zuanic & Associates. (Reporting by Mrinalika Roy and Arunima Kumar in Bengaluru; Editing by Saumyadeb Chakrabarty)
Yahoo
4 days ago
- Business
- Yahoo
Why Investors Were so High on Curaleaf Stock Thursday
Key Points As is common in the pot industry, Curaleaf posted a net loss in its second quarter. There were several reasons to be optimistic about its future, however. 10 stocks we like better than Curaleaf › Earnings season is always something of a nerve-shredding time for marijuana stock investors, as pot companies more often than not tend to post bottom-line losses. Sure enough, sector mainstay Curaleaf (OTC: CURLF) delivered a deficit in the second quarter, as its earnings release published after market close Wednesday revealed. However, it wasn't significantly deeper on a comparable basis. Meanwhile, there were other glimmers of hope in the document. As a result, bullish investors traded up Curaleaf stock on the day, powering it to a nearly 7% gain. Investor tolerance for loss For the quarter, Curaleaf posted total net revenue of more than $314 million, representing a slide from the over $342 million it earned in the same period of 2024. That net loss, meanwhile, was considerable but not much worse than in the year-ago frame; it deepened to $53 million ($0.07 per share) from nearly $49 million. Curaleaf continued to expand during the quarter, as it flicked the lights on in two dispensaries, one located in populous Florida (specifically the municipality of Winter Park, near Orlando) and the other in Lima, Ohio. On the product side, it launched a pair of new products, Anthem pre-rolled cannabis cigarettes and Select ACE oil. Perhaps more impactfully for the future, it was awarded a license to participate in the specialized marijuana market of another populous location, the country of Turkey. Its license gives it entry to that nation's medical pot market, which began at the end of July with a new law allowing for sales in pharmacies to qualifying patients. Looking for legalization As ever with marijuana stocks, they're probably not going to move significantly -- and sustainably -- until full-blown legalization (or at least decriminalization) is enacted in a major jurisdiction. All eyes are on the U.S., where halting efforts in this sphere have resulted in a patchwork of states where medical and/or recreational weed sale and consumption are permitted. Should you invest $1,000 in Curaleaf right now? Before you buy stock in Curaleaf, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Curaleaf wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $635,544!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,099,758!* Now, it's worth noting Stock Advisor's total average return is 1,046% — a market-crushing outperformance compared to 181% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 4, 2025 Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why Investors Were so High on Curaleaf Stock Thursday was originally published by The Motley Fool Sign in to access your portfolio
Wall Street Journal
4 days ago
- Business
- Wall Street Journal
Trump Weighs Reclassifying Marijuana as Less Dangerous Drug
President Trump is considering reclassifying marijuana as a less dangerous drug, according to people familiar with the matter, after pot companies have poured millions of dollars into Trump's political groups. At a $1 million-a-plate fundraiser at his New Jersey golf club earlier this month, Trump told attendees that he was interested in change, the people, who declined to be named, said. Such a shift, which the Biden administration started pursuing but didn't enact before leaving office, would make it much easier to buy and sell pot and make the multibillion-dollar industry more profitable.
Yahoo
09-07-2025
- Business
- Yahoo
Pot producer Canopy Growth terminates CFO Judy Hong
(Reuters) -Canadian pot producer Canopy Growth said on Wednesday it has terminated the employment of chief financial officer Judy Hong "without cause". The termination of Hong, who was appointed CFO in 2022, was not related to its operating results or due to any disagreements or concerns over its financial or reporting practices, Canopy said. The company, once an industry leader, had raised doubts about its ability to continue as a going concern in 2023 as it struggled to turn profitable. Canopy appointed as interim CFO Tom Stewart, who was its chief accounting officer from April 2019 to August 2023. The company has also begun a search for a permanent CFO. The U.S.-listed shares of the company were up 1.8% in morning trading after the announcement.
