Shares of Tilray Brands (NASDAQ: TLRY) surged 65% this week as investors anticipate a potential reclassification of marijuana from a Schedule I drug to a Schedule III drug by the Trump administration. This move could benefit cannabis companies by easing access to financial services and allowing for federal tax deductions.

President Trump is considering the reclassification of marijuana, with a decision possible as soon as December 15. The DEA defines Schedule I drugs as having high abuse potential, while Schedule III drugs have lower dependence potential. This change could have significant financial implications for the cannabis industry.

If marijuana is rescheduled, it could lead to increased after-tax profits for companies like Tilray. This reclassification would enable cannabis producers to access banking services and claim federal tax deductions for business expenses. Investors should consider the potential impact of these changes on Tilray’s stock performance.

The Motley Fool Stock Advisor team did not include Tilray Brands in their list of top 10 stocks for investors to buy now. Historically, their stock picks have outperformed the S&P 500 by a wide margin, with significant returns on investments in companies like Netflix and Nvidia. Investors should weigh this information before making investment decisions.

Read more at Yahoo Finance: Why Tilray Stock Soared This Week