Steven Schain of Smart-Counsel LLC.
Causing a day-long, double-digit cannabis stock surge peaking at 40.56%, on Aug. 30, the U.S. Department of Health and Human Services (HHS) recommended that the U.S. Drug Enforcement Administration (DEA) reschedule marijuana from Schedule I to Schedule III of the Comprehensive Drug Abuse Prevention and Control Act of 1970, 21 U.S.C. Sections 801, Et. Seq (1970) (Controlled Substance Act).
Although the final decision rests with the DEA, if cannabis is reclassified to Schedule III, marijuana growers, processors, transporters or sellers (marijuana-related businesses or MRBs) will cease being encumbered by onerous operating and taxing obstacles to become significantly more profitable, federally funded cannabis research will finally occur, and investment in marijuana-related businesses should soar.
