"US Eases Restrictions on Pot, Fueling Surge in Cannabis Industry"

Shares of marijuana companies surged by up to 37% after a U.S. health agency proposed reclassifying cannabis as a lower-risk substance, raising hopes of federal legalization. While nearly 40 U.S. states have already legalized marijuana in some form, federal efforts have faced obstacles, leaving investors cautious and the industry reliant on non-traditional funding sources. The move to reclassify cannabis could eliminate burdensome tax treatment and attract institutional and strategic investors. Shares of Cronos Group, OrganiGram Holdings, Aurora Cannabis, Canopy Growth, Verano Holdings, Green Thumb Industries, Cresco Labs, Curaleaf Holdings, and Goodness Growth all saw significant increases. The U.S. Department of Health and Human Services has recommended the reclassification to the Drug Enforcement Agency, which will conduct its own review.