Cannabis Stocks Soar as Trump Shares Pro-Medical Cannabis Video

Shares of cannabis companies spiked on Monday after U.S. President Donald Trump shared a social media post advocating the use of Cannabidiol (CBD) for medical use by senior citizens.

The video shared by Trump on Truth Social mentioned “revolutionizing senior healthcare” and the efficacy of the Endocannabinoid System. The video mentions a “gamechanger” that restores the Endocannabinoid System and relieves pain and stress - hemp-derived CBD.

The video also cites the lack of FDA guidance for CBD products and states that “older adults are suffering needlessly. Hemp-derived CBD can help them feel better, live longer, and improve their quality of life significantly.”

The video was produced by the Commonwealth Project, which advocates for integrating medical cannabis into mainstream healthcare for seniors. The group was one of 25 participants named to a cannabis rescheduling hearing that was initiated under the Joe Biden administration.

According to Reuters, after Trump shared the video, U.S.-listed shares of Canopy Growth gained 18.3%, Tilray Brands climbed 42%, Cronos rose 15.5%, and Aurora Cannabis gained 24.5%. MSOS, a cannabis exchange-traded fund, also soared on Monday after Trump shared the video.

Trump: Decision Soon on Rescheduling

The stock surge rekindled hopes of some supporters regarding the likelihood of rescheduling for cannabis.

In August, Trump told reporters, “we’re looking at reclassification and we’ll make a determination over the next, I would say, over the next few weeks.”

During the press conference, Trump said that rescheduling is “a very complicated subject,” and that “I’ve heard great things having to do with medical [cannabis], and I’ve had bad things having to do with just about everything else.”

During his presidential campaign in 2024, Trump voiced support for rescheduling, but the issue hasn’t moved forward. 

In September 2024, Trump wrote in a Truth Social post that “I believe it is time to end needless arrests and incarcerations of adults for small amounts of marijuana for personal use. We must also implement smart regulations, while providing access for adults to safe, tested products.”

The decision on whether or not to reschedule ultimately lies with the Drug Enforcement Administration (DEA), which is currently examining the issue. 

What would Schedule III mean for the cannabis industry? 

Cannabis is currently a Schedule 1 controlled substance, meaning that it is considered to have a high risk of abuse and no safe, accepted medical use. Other Schedule I drugs include heroin, crack cocaine, and LSD. 

Reclassifying cannabis to Schedule III would confirm that the U.S. government recognizes that marijuana has proven medical use and relatively low potential for abuse. If approved by the FDA, Schedule III can be prescribed by a physician and distributed by a DEA-registered entity. 

While rescheduling would fall short of actual federal legalization, it would remove the 280E tax code that restricts cannabis companies from deducting business expenses. This would be a major boon to cannabis businesses, in particular those that are struggling to stay profitable.  

The move to Schedule III would also make financial institutions more likely to lend money to cannabis businesses by reducing the legal and financial risk of lending to state-licensed cannabis companies. 

Cannabis-derived drug shows potential to relieve back pain

In other medical cannabis news, this week, a new study revealed that an experimental cannabis-derived medication has shown efficacy in treating chronic pain. 

The 800-patient study found that the medicine demonstrated "statistically significant pain reduction,” with participants reporting a nearly 2% improvement on an 11-point scale. They also reported improvements in sleep quality and physical function. 

The drug, VER-01, is produced by the German company Vertanical. It is a cannabis extract that includes low-potency THC, unlike the FDA-approved cannabis drug Epidiolex, which contains CBD-only. The researchers stated that the Vertanical produced drug showed no signs of drug abuse, dependence, or withdrawal among participants over the course of the 12-week study. 

The company has stated that it is “working closely” with regulators to develop a study that will support FDA approval.