Canopy Growth Corp. (CGC, +22.61%) stock is surging, up 9.5% in premarket trades on Monday, putting it on track to trade above $1 for the first time since May.
The surge comes after an impressive 23% rally in the previous session, capping off a strong week for cannabis stocks.
The positive momentum in the sector can be attributed to the Drug Enforcement Administration's (DEA) decision to review the Schedule I status of cannabis. This move has sparked optimism among investors and industry insiders.
Furthermore, the U.S. Department of Health and Human Services recently recommended re-classifying cannabis to Schedule III, a significant development that would legalize cannabis for regulated medical use under federal law.
Attorney General Merrick Garland has also voiced his commitment to revising the Cole memo, which advises federal law enforcement agencies not to interfere with state-run cannabis programs.
In addition to these encouraging developments, members of Congress are optimistic about the SAFE Banking legislation, which aims to open up the financial system to cannabis companies. This bill may finally go to the Senate for a vote after a 10-year wait.
These recent advancements signify a turning point for the cannabis industry, elevating Canopy Growth Corp.'s stock and sparking hope among investors. With the potential for increased medical applications and improved access to banking services, the future looks promising for the cannabis market.