DOJ Updates Marijuana Classification Policy
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 23 2026
0mins
Should l Buy TLRY?
Source: stocktwits
- Policy Change Context: The U.S. Department of Justice has formally proposed reclassifying state-licensed medical marijuana from Schedule I to Schedule III, which, while not legalizing marijuana, reduces regulatory hurdles and offers tax relief for licensed operators, expected to enhance medical research and expand access to treatments.
- Market Reaction: Following the announcement, shares of Tilray (TLRY), Canopy Growth (CGC), Aurora Cannabis (ACB), and IGC Pharma (IGC) fell between 2-5% in morning trading despite previous gains, indicating a cautious market response to the policy change.
- Investor Sentiment: Retail sentiment on Stocktwits for TLRY, CGC, ACB, and IGC turned ‘extremely bullish’ with message volumes surging, reflecting optimistic expectations for the cannabis industry's revival, with some users claiming Tilray will become the “king of the U.S. cannabis market.”
- Akanda Corp. Outperformance: In contrast to major cannabis stocks, Akanda Corp. (AKAN) saw a 6% increase, extending a remarkable 215% surge from the previous session, with investors debating whether this explosive rally is driven by optimism over cannabis reclassification or the stock's low float.
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Analyst Views on TLRY
Wall Street analysts forecast TLRY stock price to rise
4 Analyst Rating
1 Buy
3 Hold
0 Sell
Hold
Current: 6.240
Low
8.50
Averages
9.57
High
10.00
Current: 6.240
Low
8.50
Averages
9.57
High
10.00
About TLRY
Tilray Brands, Inc. is a global lifestyle and consumer packaged goods company. It operates through four segments: cannabis operations, beverage operations, distribution operations, and the wellness business. The Cannabis operations, which encompasses the production, distribution, sale, co-manufacturing and advisory services of both medical and adult-use cannabis. The beverage operations, which encompasses the production, marketing and of beverage products. The distribution operations, which encompasses the purchase and resale of pharmaceutical products to customers. The Wellness products, which encompasses wellness and better-for-you foods and beverages. Its brands include Good Supply, RIFF, Broken Coast, Solei, Canaca, HEXO, Redecan, Original Stash, Hop Valley, Revolver, Bake Sale, XMG, Mollo, Chowie Wowie and others. It supports over 40 brands in over 20 countries, including cannabis offerings, hemp-based foods and craft beverages.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
U.S. Reschedules Medical Marijuana to Schedule III, Impact on Cannabis Industry
- Industry Milestone: The U.S. government's rescheduling of medical marijuana to Schedule III marks a significant advancement for the industry, acknowledging valid medical uses and expected to benefit many cannabis companies in the U.S.
- Rescheduling vs. Legalization: Investors must note that rescheduling does not equate to legalization; while it facilitates research, marijuana remains a controlled substance and federally illegal, particularly for recreational use, which has not been rescheduled yet.
- Tilray's Market Positioning: Tilray Brands highlighted its readiness for U.S. expansion in a press release, calling the rescheduling a 'defining inflection point,' although the actual opportunity to enter the U.S. market remains uncertain and could take years to materialize.
- Investment Risk Warning: Despite investor hopes for U.S. legalization, Tilray's stock has underperformed in recent years, failing to generate positive returns since 2018, prompting investors to adopt a wait-and-see approach to mitigate excessive risk.
See More
Tilray Brands Seizes Opportunities in U.S. Medical Marijuana Market
- Market Opportunities and Challenges: Tilray Brands believes it is well-positioned in the U.S. medical marijuana market, although changes in U.S. laws could take years to materialize, and there is currently no indication that lawmakers are focused on this issue.
- Impact of Rescheduling: The U.S. government has rescheduled medical marijuana from a Schedule I to a Schedule III substance, marking a milestone that brings positive signals for the industry, indicating valid medical uses for marijuana, which many U.S. cannabis companies will benefit from.
- Cautious Investor Sentiment: While Tilray Brands referred to this as a
See More
U.S. Reschedules Medical Marijuana to Schedule III: Implications for the Industry
- Industry Milestone: The U.S. government's rescheduling of medical marijuana to Schedule III acknowledges its valid medical uses, which is expected to benefit many cannabis companies in the U.S., although it does not equate to legalization.
- Market Access Barriers: While Tilray Brands claims it is 'positioned for U.S. expansion,' the rescheduling does not open the border for Canadian producers to move products south, as federal laws still restrict access, making market entry unlikely in the near term.
- Investment Risk Warning: Investors should be cautious, as hopes based on government reform have often led to significant losses; Tilray has not generated a positive annual return since 2018, highlighting the gap between market expectations and reality regarding legalization.
- Cautious Investment Advice: Given the current situation, Tilray's stock is viewed as too risky, and investors are advised to adopt a wait-and-see approach, especially as other more promising investment opportunities arise.
See More
Cannabis Edibles Market Experiences Rapid Growth
- Market Size Projections: The global cannabis edibles market is expected to reach approximately $7.1 billion by 2025 and climb to around $16.6 billion by 2030, indicating a strong growth trajectory driven by consumer demand for cleaner, more discreet consumption methods.
- Successful International Export: Herbal Dispatch has successfully completed its first export of medical cannabis gummies to Australia, generating approximately $350,000 in revenue, marking a significant milestone in the company's international growth strategy and reinforcing its position as a trusted supplier in the global medical cannabis market.
- Product Diversification Strategy: Herbal Dispatch is actively expanding its gummies and edibles offerings domestically under the Chomp brand, responding to strong consumer demand across both medical and recreational channels, highlighting the company's focus on convenient, dose-controlled formats to drive long-term growth.
- Emerging Investment Opportunities: With potential U.S. federal reform and the ongoing expansion of medical programs globally, the cannabis edibles market is positioned at the intersection of several powerful trends, likely capturing a larger market share and driving revenue diversification in high-growth categories.
See More
AKAN Stock Surges Following Marijuana Reclassification
- Stock Performance: Since the marijuana reclassification, AKAN stock has significantly outperformed peers Tilray, Canopy Growth, and Aurora Cannabis, which have seen declines of 8%, 4%, and 8% respectively, while AKAN surged 32%.
- Market Reaction: In the latest pre-market trading, AKAN shares surged 32%, marking its fourth-largest single-day gain this year, reflecting strong market confidence in its future growth potential.
- Policy Impact: The U.S. Department of Justice's reclassification of medical marijuana as a less dangerous drug is expected to ease regulatory burdens on licensed operators, provide tax relief, and support research, driving AKAN's strong performance.
- Retail Trader Sentiment: Over the past 30 days, message volume for AKAN on Stocktwits has skyrocketed by over 106,200%, indicating extremely bullish sentiment among retail investors, with many predicting the stock could reach triple digits.
See More
Trump Advocates for Marijuana Rescheduling
- Tax Relief Impact: Following the rescheduling of marijuana to Schedule III, U.S. companies like Curaleaf Holdings, Green Thumb Industries, and Trulieve Cannabis will benefit from tax reductions, allowing them to claim more expenses and thereby enhance profitability.
- Canadian Companies Limited: Canadian firms such as Tilray Brands are largely unaffected by the rescheduling due to the federal ban preventing them from selling marijuana products in the U.S., highlighting the need for investors to avoid misconceptions about the implications.
- Market Reaction Volatility: Although Tilray's stock surged 14% on the rescheduling news, it subsequently fell due to a lack of growth catalysts, reflecting market concerns about its future prospects, with a year-to-date decline of 27%.
- Investment Risk Advisory: Investors should exercise caution in making decisions based solely on marijuana reform news, as not all cannabis stocks will benefit equally, emphasizing the importance of understanding the full context before investing.
See More
U.S. Reschedules Medical Marijuana to Schedule III, Impact on Cannabis Industry
- Industry Milestone: The U.S. government's rescheduling of medical marijuana to Schedule III marks a significant advancement for the industry, acknowledging valid medical uses and expected to benefit many cannabis companies in the U.S.
- Rescheduling vs. Legalization: Investors must note that rescheduling does not equate to legalization; while it facilitates research, marijuana remains a controlled substance and federally illegal, particularly for recreational use, which has not been rescheduled yet.
- Tilray's Market Positioning: Tilray Brands highlighted its readiness for U.S. expansion in a press release, calling the rescheduling a 'defining inflection point,' although the actual opportunity to enter the U.S. market remains uncertain and could take years to materialize.
- Investment Risk Warning: Despite investor hopes for U.S. legalization, Tilray's stock has underperformed in recent years, failing to generate positive returns since 2018, prompting investors to adopt a wait-and-see approach to mitigate excessive risk.
See More
Tilray Brands Seizes Opportunities in U.S. Medical Marijuana Market
- Market Opportunities and Challenges: Tilray Brands believes it is well-positioned in the U.S. medical marijuana market, although changes in U.S. laws could take years to materialize, and there is currently no indication that lawmakers are focused on this issue.
- Impact of Rescheduling: The U.S. government has rescheduled medical marijuana from a Schedule I to a Schedule III substance, marking a milestone that brings positive signals for the industry, indicating valid medical uses for marijuana, which many U.S. cannabis companies will benefit from.
- Cautious Investor Sentiment: While Tilray Brands referred to this as a
See More
U.S. Reschedules Medical Marijuana to Schedule III: Implications for the Industry
- Industry Milestone: The U.S. government's rescheduling of medical marijuana to Schedule III acknowledges its valid medical uses, which is expected to benefit many cannabis companies in the U.S., although it does not equate to legalization.
- Market Access Barriers: While Tilray Brands claims it is 'positioned for U.S. expansion,' the rescheduling does not open the border for Canadian producers to move products south, as federal laws still restrict access, making market entry unlikely in the near term.
- Investment Risk Warning: Investors should be cautious, as hopes based on government reform have often led to significant losses; Tilray has not generated a positive annual return since 2018, highlighting the gap between market expectations and reality regarding legalization.
- Cautious Investment Advice: Given the current situation, Tilray's stock is viewed as too risky, and investors are advised to adopt a wait-and-see approach, especially as other more promising investment opportunities arise.
See More
Cannabis Edibles Market Experiences Rapid Growth
- Market Size Projections: The global cannabis edibles market is expected to reach approximately $7.1 billion by 2025 and climb to around $16.6 billion by 2030, indicating a strong growth trajectory driven by consumer demand for cleaner, more discreet consumption methods.
- Successful International Export: Herbal Dispatch has successfully completed its first export of medical cannabis gummies to Australia, generating approximately $350,000 in revenue, marking a significant milestone in the company's international growth strategy and reinforcing its position as a trusted supplier in the global medical cannabis market.
- Product Diversification Strategy: Herbal Dispatch is actively expanding its gummies and edibles offerings domestically under the Chomp brand, responding to strong consumer demand across both medical and recreational channels, highlighting the company's focus on convenient, dose-controlled formats to drive long-term growth.
- Emerging Investment Opportunities: With potential U.S. federal reform and the ongoing expansion of medical programs globally, the cannabis edibles market is positioned at the intersection of several powerful trends, likely capturing a larger market share and driving revenue diversification in high-growth categories.
See More
AKAN Stock Surges Following Marijuana Reclassification
- Stock Performance: Since the marijuana reclassification, AKAN stock has significantly outperformed peers Tilray, Canopy Growth, and Aurora Cannabis, which have seen declines of 8%, 4%, and 8% respectively, while AKAN surged 32%.
- Market Reaction: In the latest pre-market trading, AKAN shares surged 32%, marking its fourth-largest single-day gain this year, reflecting strong market confidence in its future growth potential.
- Policy Impact: The U.S. Department of Justice's reclassification of medical marijuana as a less dangerous drug is expected to ease regulatory burdens on licensed operators, provide tax relief, and support research, driving AKAN's strong performance.
- Retail Trader Sentiment: Over the past 30 days, message volume for AKAN on Stocktwits has skyrocketed by over 106,200%, indicating extremely bullish sentiment among retail investors, with many predicting the stock could reach triple digits.
See More
Trump Advocates for Marijuana Rescheduling
- Tax Relief Impact: Following the rescheduling of marijuana to Schedule III, U.S. companies like Curaleaf Holdings, Green Thumb Industries, and Trulieve Cannabis will benefit from tax reductions, allowing them to claim more expenses and thereby enhance profitability.
- Canadian Companies Limited: Canadian firms such as Tilray Brands are largely unaffected by the rescheduling due to the federal ban preventing them from selling marijuana products in the U.S., highlighting the need for investors to avoid misconceptions about the implications.
- Market Reaction Volatility: Although Tilray's stock surged 14% on the rescheduling news, it subsequently fell due to a lack of growth catalysts, reflecting market concerns about its future prospects, with a year-to-date decline of 27%.
- Investment Risk Advisory: Investors should exercise caution in making decisions based solely on marijuana reform news, as not all cannabis stocks will benefit equally, emphasizing the importance of understanding the full context before investing.
See More
