Cannabis stocks selling off as Trump signs rescheduling order

[Green cannabis leaves isolated on white background. Growing medical marijuana.]
Alexandrum79/iStock via Getty Images

Pot stocks were among notable underperformers on Thursday, as President Donald Trump signed an executive order to classify marijuana as a less dangerous drug, marking a turning point in the U.S. cannabis space.

U.S. multi-state operators such as Curaleaf Holdings (CURLF [https://seekingalpha.com/symbol/CURLF]), Ascend Wellness (AAWH [https://seekingalpha.com/symbol/AAWH]), Cresco Labs (CRLBF [https://seekingalpha.com/symbol/CRLBF]), Trulieve Cannabis (TCNNF [https://seekingalpha.com/symbol/TCNNF]), Green Thumb Industries (GTBIF [https://seekingalpha.com/symbol/GTBIF]), Jushi Holdings (JUSHF [https://seekingalpha.com/symbol/JUSHF]), and Verano Holdings (VRNO [https://seekingalpha.com/symbol/VRNO]) all posted double-digit percentage declines.

AdvisorShares Pure US Cannabis ETF (MSOS [https://seekingalpha.com/symbol/MSOS]), which represents U.S. multi-state operators, and Amplify Seymour Cannabis ETF (CNBS [https://seekingalpha.com/symbol/CNBS]) slipped ~12% each, leading other underperformers Amplify Alternative Harvest ETF (MJ [https://seekingalpha.com/symbol/MJ]) and AdvisorShares Pure Cannabis ETF (YOLO [https://seekingalpha.com/symbol/YOLO]).

Canadian Licensed Producers, Canopy Growth (CGC [https://seekingalpha.com/symbol/CGC]), Tilray (TLRY [https://seekingalpha.com/symbol/TLRY]), Cronos (CRON [https://seekingalpha.com/symbol/CRON]), Aurora Cannabis (ACB [https://seekingalpha.com/symbol/ACB]), SNDL Inc. (SNDL [https://seekingalpha.com/symbol/SNDL]), and OrganiGram Holdings (OGI [https://seekingalpha.com/symbol/OGI]) are among the outperformers.

A short while ago, Trump signed the executive order at an Oval House event attended by HHS Secretary Robert F. Kennedy Jr. and Mehmet Oz, the administrator for the Centers for Medicare & Medicaid Services, among others.

The directive orders federal agencies to implement plans to transfer cannabis from Schedule I to Schedule III of the Controlled Substances Act. Currently, under the CSA, cannabis is classified under Schedule I, which includes drugs such as LSD and heroin, and under Schedule III it will be classified alongside medically important therapies such as ketamine.

“We have people begging for me to do this, people that are in great pain for decades,” Trump said. The order marked the beginning of what could be the most significant change in federal marijuana policy since the cannabis prohibition decades ago.

_Update: 2:21 PM ET: Includes developments from the signing event_

MORE ON ADVISORSHARES PURE US CANNABIS ETF, TRULIEVE CANNABIS, ETC.

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* Trulieve's Rally Is A Chance To Exit [https://seekingalpha.com/article/4853185-trulieves-rally-is-a-chance-to-exit]
* President Trump May Reschedule Cannabis: Should You Buy MSOS Or NewLake Capital? [https://seekingalpha.com/article/4853042-president-trump-may-reschedule-cannabis-should-you-buy-msos-or-newlake-capital]
* Pot stocks rally as Trump expected to sign executive order on rescheduling [https://seekingalpha.com/news/4532492-pot-stocks-rally-trumps-imminent-order-rescheduling]
* GOP Rep. Lawler calls marijuana 'gateway drug' in opposing Trump rescheduling plan [https://seekingalpha.com/news/4532269-gop-rep-lawler-calls-marijuana-gateway-drug-opposing-trump-rescheduling-plan]