PRISM Insight: Cannabis Stocks May Be Seeing Green During Marijuana Awareness Month as Investors Wait on DEA’s Rescheduling Decision
Cannabis stocks are seeing a resurgence as investors await a decision from the DEA on potentially rescheduling marijuana. The AdvisorShares Pure US Cannabis ETF and other related ETFs have shown significant gains this year after a lackluster performance in the previous year. The rally began in August following reports that the HHS recommended rescheduling marijuana to a lower risk category under the CSA. Industry experts and investors are optimistic about a positive outcome, especially with indications from the White House suggesting a major cannabis-related policy decision soon, potentially involving rescheduling. Snead, an expert in cannabis banking and reforms, hinted at a possible DEA rescheduling decision, although it could also be more significant. Senate Democrats have urged the DEA to consider completely descheduling marijuana, adding further momentum to the ongoing discussion.
The month of February is Marijuana Awareness Month. Medical marijuana is commonly used in the United States for pain control, particularly for chronic pain in conditions like multiple sclerosis and nerve pain. It offers a safer alternative to opioids and NSAIDs, especially for those with kidney or gastrointestinal issues. Marijuana’s muscle relaxant properties are beneficial for conditions like Parkinson’s disease and fibromyalgia. It is also used to manage nausea, weight loss, and glaucoma, and shows promise in treating PTSD in veterans and symptoms associated with HIV, irritable bowel syndrome, and Crohn’s disease. However, claims of effectiveness should be critically evaluated on a case by case basis.
PRISM MarketView’s Emerging Cannabis Index tracks small/micro-cap stocks that are developing or marketing medical or legal marijuana products. Some companies it includes are highlighted below:
Tilray Brands, Inc.
Leading global cannabis company, Tilray Brands, Inc. (TLRY) specializes in cultivation, processing, and distribution of medical and recreational cannabis products. With a focus on innovation, quality, and sustainability, Tilray Brands offers a diverse range of cannabis-based products including dried flower, oils, edibles, and wellness products. Recently, Manitoba Harvest, a wholly owned subsidiary of Tilray announced its is partnering with Bioactives company Brightseed to revolutionize the functional fiber market with breakthrough product, Manitoba Harvest Bioactive Fiber.
Green Thumb Industries, Inc.
Cannabis consumer packaged goods and retailer, Green Thumb Industries, Inc. (GTBIF) focuses on providing high-quality cannabis products for both medical and recreational use. Operating across multiple states in the United States, GTI has established itself as a vertically integrated company, involved in cultivation, processing, and retailing of cannabis products. The company will be reporting its Q4 and Full Year 2023 earnings followed by a conference call at the end of the month on Wednesday, February 28th.
Clever Leaves Holdings Inc.
The vertically integrated multinational cannabis company, Clever Leaves Holdings Inc. (CLVR) has developed operations focused on cultivation, extraction, formulation, and distribution of pharmaceutical-grade cannabis products. Headquartered in Colombia, Clever Leaves leverages its strategic geographic location and expertise in sustainable agricultural practices to cultivate high-quality cannabis at scale. Recently, the company announced through its partnership with award-winning Dutch seed bank, Paradise Seeds (“Paradise”), their intention to develop and register high performance cannabis cultivars in Colombia. Clever Leaves will have exclusive license to cultivate some of these genetics, while Paradise will make other cultivars available to third parties for cultivation across Colombia and Latin America.
