The shares rose further after the DEA confirmed it had received the recommendation and signaled that it would launch its own review to decide on the reclassification, per Bloomberg. Marijuana is currently classed as a Schedule I drug in the US, the same category as heroin and LSD, despite widespread legalization.This classification has been a drag on the industry for years and a lower risk rating would open up greater access to the financial services industry for cannabis companies.”A move to Schedule III would eliminate the onerous tax treatment of U.S. MSOs [multi-state operators], and represent a major legitimizing event for the industry that could draw participation from institutions and strategic investors who have hitherto largely been sidelined by its Schedule I status,” Eight Capital analyst Ty Collin told Reuters.
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