Shares of Tilray Brands experienced a remarkable surge of 40.8% during the afternoon trading session, following news that the Trump administration was considering easing federal restrictions on marijuana. Reports indicated that a potential plan involves reclassifying cannabis from a Schedule I drug—categorizing it alongside substances such as heroin—to a less restrictive Schedule III classification, which includes certain common prescription painkillers. While this reclassification does not legalize marijuana outright, it promises to significantly diminish federal oversight, paving the way for increased research opportunities and potentially enhancing profitability for cannabis companies.
The anticipated change could offer numerous advantages for the industry, including reduced tax burdens and the removal of restrictive banking regulations that have long hindered financial transactions within the sector. Consequently, the development sparked a widespread rally across the cannabis market, highlighting the sector’s resilience and potential growth opportunities moving forward.
Tilray’s stock has shown extreme volatility, with over 90 movements greater than 5% in the past year, underscoring how pivotal this recent news has been on investor sentiment. Notably, just 16 days prior, the company’s stock had plummeted by 16.4% after announcing a 1-for-10 reverse stock split, a move intended to consolidate shares to increase the price per share and attract institutional investors. This prior drop reflected investor apprehension, as reverse splits are often interpreted as efforts to maintain compliance with stock exchange listing requirements.
As of now, Tilray’s stock has fallen by 15.6% since the start of the year, trading at $12.32 per share, which is 41.3% below its 52-week high of $21 recorded in October 2025. The recent announcement regarding potential federal changes presents a renewed opportunity for investors to reconsider their positions in Tilray, urging a closer look at the company’s evolving prospects in a potentially transforming legal landscape for cannabis.