Larger issues loom at home for the Canada-based cannabis company.
Larger issues loom at home for the Canada-based cannabis company.
Last December, President Donald Trump issued Executive Order 14370, intended to fast-track the rescheduling of marijuana to Schedule III, in turn paving the way for federal regulatory clarity. At the time, marijuana stocks, including Canopy Growth (CGC -3.06%), surged sharply on the news, with Canopy itself surging from $1.15 to nearly $2 per share.
Shares have since coughed back these gains and then some, with Canopy tumbling on the recent action, or more accurately, inaction, regarding rescheduling. That said, keep in mind that larger issues, unrelated to this factor, still loom for the company.
The latest on the DEA's rescheduling efforts
On Sept. 29, Derek C. Julius, Chief Administrative Judge of the Drug Enforcement Administration, issued a temporary stay on the aforementioned marijuana rescheduling process, in response to calls from several parties to issue a stay, for a briefing to be completed on a recently released report on the marijuana rescheduling plan from the U.S. Government Accountability Office (GAO).
The judge gave the DEA until Oct. 13 to respond; on Oct. 9, the DEA filed its response, objecting to the briefing request but deferring to the judge. In response, Judge Julius granted another stay, to allow the anti-rescheduling parties to respond to the DEA's response.
$0.71-$0.02 (-3.06%)
NASDAQ · As of 4:00 PM ET 10/16/26
The silver lining for Canopy Growth
Canopy Growth stock may be tumbling on this news, but keep in mind how this remains a secondary factor for the Canada-based marijuana company. Although Canopy has a U.S. affiliate, Canopy USA, Canada remains its largest market.
Averytin News Financial update.