United States President Donald Trump announced that his administration is planning to adjust the federal restrictions relating to cannabis. To date, this medical herb is listed as a Schedule I Drug. This places cannabis within the same category as Heroin and LSD. Anyone familiar with cannabis knows this classification isn’t true.
If these regulations are modified in the manner that Donald Trump & The Drug Enforcement Agency approve, cannabis will become a Schedule III Drug. This would place marijuana in the same category as over-the-counter prescription painkillers. As such, numerous businesses would be authorized to sell this medical herb under the new regulations.
Investor Interest
American investors showed immediate interest after Donald Trump announced the federal government would be reclassifying the “Scheduled Narcotic” known as cannabis. These investors didn’t focus solely on American Cultivators; they also looked to Canada.
On December 12th, Tilray Brands Inc. witnessed an unexpected surge in the valuation of its shares, jumping from $3.35 to $14.94. Organigram Global Inc. had its shares increase by 10%, while Aurora Cannabis saw its shares rise of 13%. However, Canopy Growth Corp experienced the second-highest surge next to Tilray Brands with a 32% increase in share valuation.
Obtaining the necessary funds to produce cannabis in America has become an overwhelming challenge, as federal restrictions eliminate the ability for institutionalized banks to provide loans. By reclassifying cannabis, it’ll enable producers & cultivators to obtain loans with ease when compared to the current options.
Establishing the infrastructure & networks needed to manufacture cannabis comes as a secondary challenge in America. That’s where companies like Tilray Brands Inc. and Organigram Global Inc. come into effect. Already operational in America, these companies have the necessary finances needed to expand throughout the country.
International Cannabis Companies
The North American and International cannabis markets have continued to flourish in recent years. We’ve already witnessed an assortment of brands that are available in America and Canada. Those include the following:
- Claybourne Co.
- Cookies
- Jeeter
As regulatory changes are made throughout the United States, we may see Canadian Brands like Good Supply enter the U.S. market. This brand has already positioned itself throughout Australia, Germany, and New Zealand. Could the United States be next? Either way, we recommend coming back to Reefer Region for future updates on the regulatory changes being made to cannabis in America.
