Tilray (TLRY) stock surged 14.2% on Wednesday, reaching a high of $8, following a report that the Trump administration may reclassify cannabis from a Schedule I to a Schedule III controlled substance. The move, which could come as soon as Wednesday according to an Axios report citing a White House official, would represent the most significant federal cannabis reform in decades.
Reclassification would not federally legalize marijuana, but it would ease major barriers for cannabis businesses. Currently, as a Schedule I drug (alongside heroin and LSD), cannabis businesses face severe restrictions, particularly in banking. Reclassification to Schedule III (the same category as Tylenol with codeine) would open the door to banking access and broader medical research.
The report follows an executive order signed by President Trump in December 2025, which directed the attorney general to accelerate the rescheduling process and expand medical research into cannabis. The order had no specific timeline, but Wednesday's report put a clock on it.
Markets responded quickly and intensely. Tilray (TLRY) volume hit more than 28 million shares, a ten-fold spike above its 30-day daily average of 2.8 million. Rival Canopy Growth (CGC) gained 21.1%, Curaleaf (CURLF) surged 26.3%, and the AdvisorShares Pure US Cannabis ETF (MSOS) climbed 19.4%.
For Tilray specifically, the news is significant even though the company currently does not sell cannabis in the United States. The company has stated it is waiting for a more favorable regulatory environment before entering the American market.
Tilray's most recent quarterly results showed cannabis revenue up 19% to $64.8 million, driven by international sales, acquisitions, and its strong position in Canada. The company has been diversifying into alcoholic beverages, acquiring several brands including Brewdog, the UK's largest craft beer brand, and striking a partnership with Carlsberg. However, beverage revenue declined to $43 million last quarter from $56 million a year earlier. Net loss improved 97% to approximately $2.4 million, supported by the company's internal 'Project 420' cost-cutting initiative.
