Trump plans to sign an executive order to reclassify marijuana, causing marijuana stocks to rebound in the US and Canada.

Earlier this week, after weakening at one point, US marijuana-related stocks rebounded on Wednesday. Reports said that US President Trump is expected to sign an executive order on Wednesday regarding the reclassification of marijuana, boosting market sentiment. According to two senior US government officials familiar with the matter, the executive order is expected to point out that the long delay in reclassifying marijuana has not truly served the Americans who could benefit from its medical uses, including patients suffering from chronic pain and other illnesses. Following the news, several marijuana-related ETFs significantly rose. Among them, the AdvisorShares Pure US Cannabis ETF (MSOS.US), representing operators in multiple states, rose over 2.4% leading the sector; in addition, the AdvisorShares Pure Cannabis ETF (YOLO.US) and the Amplify Seymour Cannabis ETF (CNBS.US) also rose simultaneously. According to reports, the White House plans to push for the reclassification of marijuana from a Schedule I controlled substance under the Controlled Substances Act to a Schedule III controlled substance. Currently, Schedule I substances also include LSD and heroin, while Schedule III substances include drugs like ketamine with clearly defined medical uses. Analysts point out that this does not mean that marijuana will be legalized nationwide in the US, but it could bring substantial benefits to the industry. It is generally believed in the market that if the reclassification is implemented, marijuana companies will benefit from tax breaks and face fewer restrictions in the cross-state distribution of products, thereby improving profitability and business environment. Previously, as Trump did not immediately sign the executive order as expected by the market on Monday, stocks like MSOS, which are related to marijuana concepts, experienced downward pressure. However, Trump confirmed at a White House event his intention to push forward with the marijuana reclassification plan, quickly lifting the sector's sentiment. In terms of individual stocks, among US marijuana operators, Ascend Wellness (AAWH.US), Curaleaf Holdings (CURLF.US), Cresco Labs (CRLBF.US), Green Thumb Industries (GTBIF.US), Trulieve Cannabis (TCNNF.US), Ayr Wellness (AYRWF.US), Verano Holdings (VRNO.US), and Jushi Holdings (JUSHF.US) have all attracted attention. In terms of licensed producers in Canada, Canopy Growth (CGC.US), Tilray (TLRY.US), Cronos Group (CRON.US), Aurora Cannabis (ACB.US), SNDL (SNDL.US), and OrganiGram Holdings (OGI.US) have also shown strength along with the sector as a whole.