Multi-state cannabis operators Curalef Holdings Inc., Trulieve Cannabis Corp. and Verano Holdings Corp. will get a boost if the U.S. reclassifies cannabis as a Schedule III drug from its current Schedule I status, Alliance Global Partners analyst Aaron Grey said Tuesday. The Drug Enforcement Administration is mulling a recommendation from the U.S. Department of Health and Human Services (HHS) to lower cannabis to Schedule I, where it now resides with the likes of LSD and heroin, meaning that it has no medical benefits under federal law.
A decision is expected by the end of 2024. HHS recommended in August that cannabis should be re-classified as Schedule III, which recognizes the medical applications of a drug and typically requires regulation by the Food and Drug Administration. The subsequent release of a 250-page document containing the findings of the HHS recommendation sparked a rally in cannabis stocks a couple of weeks ago. Also read: Green Thumb, Trulieve and other cannabis stocks up as much as 23% as details emerge on HHS recommendation to lower drug classification Also read: HHS recommends rescheduling cannabis, and stocks in the sector rally Most legal experts agree that lowering cannabis to Schedule III would mean that the 280E tax law passed during the Drug Wars of the 1980s would no longer apply to state-legal marijuana companies. The 280E measure prevents cannabis companies from taking standard business-tax exemptions for expenses such as cost of goods sold, and other major deductions. It significantly raises the cost of doing business for the sector. Alliance Global Partners analyst Grey said Tuesday that Curaleaf …
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A decision is expected by the end of 2024. HHS recommended in August that cannabis should be re-classified as Schedule III, which recognizes the medical applications of a drug and typically requires regulation by the Food and Drug Administration. The subsequent release of a 250-page document containing the findings of the HHS recommendation sparked a rally in cannabis stocks a couple of weeks ago. Also read: Green Thumb, Trulieve and other cannabis stocks up as much as 23% as details emerge on HHS recommendation to lower drug classification Also read: HHS recommends rescheduling cannabis, and stocks in the sector rally Most legal experts agree that lowering cannabis to Schedule III would mean that the 280E tax law passed during the Drug Wars of the 1980s would no longer apply to state-legal marijuana companies. The 280E measure prevents cannabis companies from taking standard business-tax exemptions for expenses such as cost of goods sold, and other major deductions. It significantly raises the cost of doing business for the sector. Alliance Global Partners analyst Grey said Tuesday that Curaleaf …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]