HHS Calls For Cannabis Reclassification: This Week in Cannabis Investing

News of a potential reclassification led to positive change for U.S. cannabis stocks.

Cannabis Investing
(Image credit: Getty Images)

The end of August and transition into fall may not only signal a change in seasons, but it can also mark the beginning of change in the nation's capital. Most people were probably at the beach soaking up the final days of summer sun when the Department of Health and Human Services (HHS) sent a letter recommending that cannabis be classified as a Schedule III substance under the Controlled Substances Act (CSA). Arriving at a point in time when few expected it to arrive, the news of a potential reclassification led to positive change for U.S. cannabis stocks. With that said, it is still amusing that media members continue to note Canadian stocks in this discussion when this move directly benefits U.S.-based cannabis professionals and companies.

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Morgan Paxhia
Contributing Writer

Morgan Paxhia is Managing Director and Co-Founder of Poseidon Investment Management. With over 10 years experience in investing and finance, Morgan has developed a deep understanding of individual company analysis, portfolio construction, and risk mitigation. This content is not intended to provide any investment, financial, legal, regulatory, accounting, tax or similar advice, and nothing should be construed as a recommendation by Poseidon Investment Management, LLC, its affiliates, or any third party, to acquire or dispose of any investment or security, or to engage in any investment strategy or transaction. An investment in any strategy involves a high degree of risk and there is always the possibility of loss, including the loss of principal. This content should not be considered as an offer or solicitation to purchase or sell securities or other services. Any of the securities identified and described herein are for illustrative purposes only.  Their selection was based upon nonperformance-based objective criteria. The content presented is believed to be factual and up-to-date, but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. Past performance is not indicative of future results.