Why Aurora Cannabis Stock Just Rocketed Higher

• The Washington Post reports that President Trump volition reschedule marijuana arsenic a Schedule III drug.

• Marijuana is already ineligible successful Canada, but Aurora Cannabis can't look to marque a nett disconnected of it.

• 10 stocks we similar amended than Aurora Cannabis ›

Aurora Cannabis (NASDAQ: ACB) banal leapt 14.5% "higher" (get it? Marijuana? High?) done 11:55 a.m. ET Friday connected immoderate affirmative marijuana quality retired of the White House.

As The Washington Post reports, President Trump wants to legalize marijuana (sort of), and marijuana investors are overjoyed astatine the prospect.

The Post cites six abstracted sources confirming that Trump volition contented an enforcement bid instructing the Justice Department to reclassify marijuana arsenic a Schedule III cause (i.e., nary longer Schedule I), and says this could hap arsenic aboriginal arsenic January. For weed aficionados who don't privation to hold adjacent that long, however, CNBC says the President could motion his bid arsenic aboriginal arsenic Monday.

What would this mean for investors successful Aurora Cannabis?

Well, rescheduling wouldn't legalize marijuana per se -- but it would marque it a full batch easier to bash concern successful marijuana. A determination from Schedules I to III would fundamentally crook cannabis into a cause akin to "common medicine painkillers and different drugs" specified arsenic Tylenol with codeine, and dissociate weed from harder drugs specified arsenic heroin.

Banks would consciousness much comfy extending loans to and taking deposits from marijuana businesses. They'd beryllium capable to deduct much expenses from their income taxes. All of this would thin to summation (legal) request for the marijuana that Aurora Cannabis produces.

Investors request to beryllium aware, though, that simply rescheduling marijuana whitethorn not instantly crook Aurora Cannabis into a profitable stock. Marijuana has been ineligible successful Aurora's location marketplace of Canada since 2018, but the institution inactive loses wealth astir years.

Marijuana investors should bask the momentum down their banal today. Just... don't expect it to proceed without immoderate coagulated profits to enactment it.

Before you bargain banal successful Aurora Cannabis, see this:

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