DEA

ivigilanteblog

He doesn't have to elimimate the CSA by way of EO. He can direct those portions of the executive branch to which Congress has delegated scheduling authority within the CSA - that is, HHS/DEA. He (probably wisely) decided to ask them to consider scheduling rather than direct them to change it, but he could have done either.

phatbob198

I found this so far: >• Electronic comments: DEA encourages that all comments be submitted electronically through the Federal eRulemaking Portal, which provides the ability to type comments directly into the comment field on the web page or to attach a file containing comments. Please go to http://www.regulations.gov and follow the online instructions at that site for submitting comments. Upon completion of your submission, you will receive a Comment Tracking Number for your comment generated by http://www.regulations.gov . Please be aware that submitted comments are not instantaneously available for public view on http://www.regulations.gov . If you have received a Comment Tracking Number, your comment has been successfully submitted, and there is no need to resubmit the same comment. >• Paper comments: Paper comments that duplicate the electronic submission are discouraged. Should you wish to mail a paper comment in lieu of submitting a comment electronically, it should be sent via regular or express mail to: Drug Enforcement Administration, Attn: DEA Federal Register Representative/DPW, 8701 Morrissette Drive, Springfield, Virginia 22152. Hand-delivered comments will not be accepted. >For further info, contact: >Scott A. Brinks, Regulatory Drafting and Policy Support Section, Diversion Control Division, Drug Enforcement Administration; Telephone: (571) 776–3882.

phatbob198

I think this section of an article I posted yesterday contains important info worth highlighting. >Notably, the DEA could reschedule cannabis by issuing a final order and bypass the notice and comment period, which would allow the change to become effective 30 days after publication in the Federal Register. **However, it seems certain that the DEA will elect to do so by proposed rule, which is followed by a comment period of between 30-90 days**. This comment period will be followed by a formal administrative hearing if requested, which rescheduling opponents will most certainly want, along with a flood of comments ranging from why cannabis should remain in Schedule I to why it should not be rescheduled lower than Schedule II. **While rescheduling to Schedule III is almost certain, it is critical that proponents submit comments as well**, in order to ensure a robust record supporting marijuana’s reclassification. We should start looking into how sumbitting comments during that period will work, and then make sure to disseminate that information.

Gambelero

He can’t just reverse a Congressional Act (Controlled Substances Act) by executive order. He can do stuff around the margins. Ordering HHS and the DEA to conduct an expeditious review of the scheduling is within his purview. He can’t just overturn the Act by executive order. It used to be common for buy-my-stocks-now-before-my-otm-options-expire-worthless types to argue that an executive order legalizing or substantially decriminalizing cannabis was imminent

blckvp2011

Marijuana has been rescheduled from schedule 1 to schedule 3 by the DEA... Which means there are going to be a lot of pharmaceutical companies that want to start investing in this. It's scheduled the same as Tylenol Codeine

SFBayStocks

That's a fairly common request for the DEA. You can search for cannabis/marijuana etc. and it comes up quite often. I believe we need to see it on the OMB dashboard first and then it goes to the federal registry. [https://www.reginfo.gov/public/jsp/EO/eoDashboard.myjsp](https://www.reginfo.gov/public/jsp/EO/eoDashboard.myjsp) (under DOJ) [https://www.federalregister.gov/documents/search?conditions%5Bagencies%5D%5B%5D=drug-enforcement-administration&order=newest](https://www.federalregister.gov/documents/search?conditions%5Bagencies%5D%5B%5D=drug-enforcement-administration&order=newest)

roostersauce_26

Yeah I’ve still never sold a share of any MSO. S3 is good for them (as long as the feds don’t crack down on their state legal businesses). I think descheduling would lead to enormous amounts of $ coming in to the space which would be our chance to land on the moon. I don’t think S3 is going to lead to any MSO operating legally. Is the DEA going to add cannabis dispensary to their list of businesses that can apply for a DEA registration? Are states going to rewrite their laws allowing people other than pharmacists to dispense controlled substances? Or would an MSO pay to have a pharmacist at every dispensary? Not to mention, if those things did happen, it would only be medical they could dispense legally. I doubt the DEA would look fondly on one of their license holders selling controlled substances illegally recreationally at the same location as their medical shop. I doubt any MSO is going to jump through these (and other) hoops to operate legally. Which means they will be operating illegally, and yeah no 280e is good, but I don’t know if it’s going to lead to much more if there isn’t more progress like safe and garland memo.

Woolf01

Federal register will cement this beyond a rumor (before that one guy who’s posting links to a DEA head confirming, that’s not anything of substance. Put it in the register), other legal opinions, SAFER, garland

phatbob198

>At the subcommittee’s previous cannabis meeting in December, members heard testimony and asked questions about various elements of marijuana oversight, including promoting social equity and business opportunities, laboratory testing and public versus private operation of a state-legal cannabis industry. >And during the panel’s first meeting late last year, Frankel said that state-run stores are “certainly an option” he’s considering for Pennsylvania, similar to what New Hampshire Gov. Chris Sununu (R) recommended for that state last year, though a state commission later shied away from that plan. >A Democratic congressman also told Marijuana Moment on Tuesday that, in light of DEA’s rescheduling determination, he expects the Justice Department will “reissue and expand” the Obama-era guidance that generally formalized a policy of non-intervention with respect to state marijuana laws.

phatbob198

>The applicant plans to manufacture bulk active pharmaceutical ingredients (APIs) **for product development and distribution to DEA registered researchers**. If the application for registration is granted, the registrant **would not be authorized to conduct other activity under this registration** aside from those coincident activities specifically authorized by DEA regulations.

blckvp2011

The DEA changed marijuana from schedule 1 to schedule 3 . This is like Tylenol Codeine which means you're going to get more pharmaceutical companies that want to get involved with marijuana companies cuz youll still will need a prescription for it

phatbob198

>The applicant plans to manufacture bulk active pharmaceutical ingredients (APIs) **for product development and distribution to DEA registered researchers**. If the application for registration is granted, the registrant **would not be authorized to conduct other activity under this registration** aside from those coincident activities specifically authorized by DEA regulations.

phatbob198

>Procedure for Rescheduling >The DEA has agreed with HHS’ recommendation for cannabis to be rescheduled to Schedule III, with Schedule III drugs defined as having a moderate to low potential for physical and psychological dependence (Schedule III drugs include ketamine, anabolic steroids, and testosterone). This rescheduling will have a significant impact on state-legal cannabis businesses, but some uncertainty remains. Once the DEA publishes its proposed rule, it will be reviewed by the White House Office of Management and Budget (“White House”) and if approved, it would then proceed to a public comment period. >Notably, the DEA could reschedule cannabis by issuing a final order and bypass the notice and comment period which would allow the change to become effective 30 days after publication in the Federal Register. However, it seems certain that the DEA will elect to do so by proposed rule, which is followed by a comment period of between 30-90 days. This comment period will be followed by a formal administrative hearing if requested, which rescheduling opponents will most certainly want, along with a flood of comments ranging from why cannabis should remain in Schedule I to why it should not be rescheduled lower than Schedule II. While rescheduling to Schedule III is almost certain, it is critical that proponents submit comments as well in order to ensure a robust record supporting marijuana’s reclassification. >Once the comment period and administrative hearing have concluded, the DEA will review the entire record and issue its final rule based on its analysis, HHS’ analysis, the comments submitted, and the administrative hearing record. The timeframe for issuing a final rule is uncertain and not statutorily defined, but since the DEA is required to review and respond to every comment submitted during the notice period, it could take some time. >Whether the DEA goes straight to issuing a final order or allows notice and comment, after the final decision/order is issued, it will not become effective until 30 days after it is published in the Federal Register. During this time, an aggrieved party that participated in the notice and comment period has 30 days to file a lawsuit to seek judicial review of the agency's decision. In the event of a lawsuit, it is possible the effective date of the reclassification is delayed by a court order. >Cannabis rescheduling is likely to inspire further federal regulations, but the nature of said regulations is uncertain. Since 2009, during the Obama administration, the federal government has declined to enforce federal law against the overwhelming majority of state compliant marijuana businesses. The federal government’s reluctance since the 2013 Cole Memorandum continued despite the DOJs enforcement guidance being rescinded during the Trump administration. It is possible we will see the DOJ reissue another enforcement memo. While it is still uncertain, enforcement action may follow cannabis rescheduling in an attempt to form a more cohesive national industry. >For example, rescheduling cannabis to Schedule III may push the FDA to enforce against false and misleading drug claims as it has for hemp products. The DEA would continue to regulate cannabis as it had under Schedule I, however, they could now require dispensaries to conform to pharmacy regulations and the significant requirements associated with such. It is unclear but unlikely that the DEA will enforce pharmacy requirements upon state-legal dispensaries, since the difficulties and required resources associated with such enforcement will likely be too burdensome for the DEA immediately following rescheduling. >The FDA may also become more involved in the regulation of cannabis, particularly concerning cannabis products’ dietary supplements and conventional food claims. While regulatory clarity would be welcome, we must be careful as to over-regulating the various cannabinoids (or compounds found in cannabis). It is likely that the FDA receives an influx of new drug applications following cannabis rescheduling, as FDA approval of any specific cannabinoids as drugs may be quite valuable. However, since FDA-approved medications cannot typically be legally added to conventional foods or dietary supplements, FDA approval of certain cannabinoids would create a complicated regulatory environment and spur subsequent consumer confusion (similar to the FDA’s approval of CBD in the form of Epidiolex). >Timeline >As for the timing of the rescheduling process, it will not happen overnight. Following approval by the White House, the DEA will likely initiate a public comment period. While this comment period itself will likely last from 30 to 90 days, the overall rescheduling process may take much longer. A previous drug rescheduling via rulemaking, for Hydrocodone Combination Products, took years to fully reschedule (though the timeline from HHS’ recommendation to the new rule taking effect was within one year). Following the quick turnaround by HHS to recommend cannabis rescheduling, it is possible that the DEA publishes its final rule as early as 2024.

phatbob198

>While Schedule III drugs may be legally prescribed and sold under federal law, the various restrictions (such as requiring FDA approval of any such Schedule III drug and DEA registration of a distributor) mean that your average dispensary, even medical dispensaries, will still be federally non-compliant. For these same reasons, the reclassification to Schedule III does not mean that marijuana grown pursuant to state programs can be sold in interstate commerce. Marijuana products, even under Schedule III, are only federally legal if they are federally approved and there are only three FDA-approved cannabis-based drugs developed to date (Marinol, Epdiolex, and Syndros). >The federal illegality of cannabis has thus prevented trademark registration in connection with most cannabis products. Unfortunately, cannabis rescheduling will not remedy this issue. Even in Schedule III, cannabis products would have to be federally lawful, with lawful use of a Schedule III drug requiring FDA approval. >Entitlement to Federal Bankruptcy Protection >Currently, plant-touching cannabis companies are not entitled to federal bankruptcy protection. That is because the U.S. Bankruptcy Code requires that bankruptcy plans are “proposed in good-faith and not by any means forbidden by law.” Since even state-regulated cannabis companies violate the federal Controlled Substances Act (CSA), they are disqualified. Unfortunately, rescheduling to Schedule III of the CSA alone will not likely solve that barrier to bankruptcy. >While some have argued otherwise, the fact is that to manufacture, distribute, or dispense a Schedule III Controlled Substance, businesses must be registered with the Drug Enforcement Administration (“DEA”). Any business or person not registered with the DEA is not authorized to manufacture, distribute, or dispense it. Meaning that violations would likely constitute an unlawful act under the CSA. Consequently, an attempt by the non-complying business to commence a voluntary petition seeking federal bankruptcy protection will likely result in a motion to dismiss the case by the U.S. Trustee’s Office. >However, in light of a recent trend among bankruptcy court’s in allowing ‘one-step-removed’ distribution of cannabis-related assets, federal rescheduling may very well result in a more liberalized approach to administering bankruptcy cases so that bankruptcy judges will be more willing to look past the issue of marijuana’s federal illegality. >There are several aspects of the existing cannabis industry which would not be immediately changed by rescheduling cannabis to Schedule III. Ongoing banking issues including the lack of access to standard commercial bank loans and lines of credit would likely persist; difficulties in processing cannabis transactions due to the reality that major credit card companies like Visa, Mastercard and others will likely still not service marijuana businesses; general federal illegality; and the criminalization of cannabis (and continued incarceration of certain offenders) in prohibitive states would remain following rescheduling.

thedmob

I agree with all of these comments. Of course I would have liked to hold the gains from the first day. But I think a floor has been placed which is great news. Risk of insolvency for many of the bigger MSOS has been removed. Risk of big dilution at shitty stock prices is much lower for the bigger players. Most importantly with news coming and it not being schedule 2 risk of all time lows is gone. I think the DEA news will continue the rally that started with HHS announcement. A rally that could potentially continue based upon garland memo and election results.

Weary_Ad162

We have confirmation it’s coming, but the DEA has yet to formerly announce. Could be wrong but believe the price action will be different when they do very soon and especially if accompanied with a version of the cole memo. This should open a lot more doors and give us a better timeline

Tiaan

The main thing I keep hearing from news videos on the rescheduling announcement is that it could be many more months until its finalized, so there's still uncertainty on timing and whether it gets done this year. I think this is largely the reason for the muted stock price reaction. From my view, we now have confirmation of S3 from the DEA, and it's reasonable to expect that it should be finalized this year. The market is forward looking, so we should expect to start seeing the impact of S3 get priced into the sector over the coming months as we get updates on the process, and as it becomes clearer that the final rule is coming this year.

Neat_Wrongdoer_2434

What people may not realize about the move to Schedule 3 is the fact it would require a pharmacy to dispense cannabis. That means a Pharmacist must be on staff in addition to dispensaries following pharm regulations such as storage requirements and approved vendors would be much more stringent than what is required now. It will also give the DEA, FDA, and NIH much more control over the industry.

Weary_Ad162

We all need to chill and remember DEA has yet to announce S3. Just another leak or rumor at this stage. When they do we’ll know a lot more and likely be accompanied with the cole memo or version of it right behind, which will allow a lot more participation. Have a great weekend 🍻

infinite_cura

Never knew that I would call the week that S3 DEA happened a disappointing week. Likewise, when we least expected, something good might happen. Either way, the tipping point is almost reached.

DirtyBirdie99

Dunno some people were speculating sched 2 or nothing at all. So confirmation that the DEA is on board with Sched 3 is a big deal. Also, the news outlets are picking this up. I think the MSOs need to do a better job at marketing their stocks. Too small a community knows about them.

halfbeerhalfhuman

Idk maybe until the DEA posts something to the register. They still haven’t said anything official

phatbob198

Once again, that is false. The DOJ Director of Public Affairs confirmed it. She is not anonymous. >Today, the Attorney General circulated a proposal to reclassify marijuana from Schedule I to Schedule III," **Justice Department director of public affairs Xochitl Hinojosa said in a statement**. The DEA is a component of the Department of Justice. "Once published by the Federal Register, it will initiate a formal rulemaking process as prescribed by Congress in the Controlled Substances Act.” https://abcnews.go.com/US/wireStory/us-drug-control-agency-move-reclassify-marijuana-historic-109794268

DeepPowderInvestment

DEA rule has not been released. There is a lot of unknown as what implementation will actually look like. Not to mention these stocks trade in the OTC and are highly manipulated. If you’re long cannabis, this is inning 2 and we are throwing out knuckleballer. So chill! If you thought you were going to catch the tide, well GL.

ChungusSpliffs

DEA needs to officially release statement lol. Back to moon town

creedthoughtsblog

Breaking News: DEA said “ummm actually forget it, let’s just keep at schedule 1 it’s easier” ^ see now that make sense

FUWS

I knew OP was gonna pump TLRY or CGC before I even skimmed the post. Canadian companies wont do much here in USA. What you think DEA/IRS just gonna let Canadian companies get a free pass on taxes/fees? They cant even get it right in their own country with legal weed. Irwin is rich af but not the share holders...

ChemDogPaltz

Yea I also doubt you can ship it in the mail too, without a DEA-certified sender and receiver so basically no different from schedule 1 in that regard

FruitnVeggie

There is still too much uncertainty. Once the OMB review is completed (hopefully within 1-2 weeks) the public will have access to the DEA proposed rule and OLC decision. The OMB rule can take up to 90 days (but its not expected to take that long), we don't know what the DEA proposed rule states, and we don't know what questions the OLC decision resolved. ..In addition, we don't know whether SAFER will be added as an amendment... Still too many unknowns, once there is more clarity I think money will start flowing in.

ear2win

We need actual confirmation, someone from the big house on camera saying they’ve received the DEA decision

GeoLogic23

Farm Bill framework has no mention of Delta 8 or the other controversial hemp cannabinoids. https://mjbizdaily.com/farm-bill-framework-seeks-to-define-hemp-doesnt-mention-delta-8-thc/ I think it's telling that this framework came out right after the DEA news, as it seems clear to me that it's going to be the DEA saying that Delta 8 is illegal due its synthetic production. However that leaves cannabinoids like hemp derived Delta 9 and THCa as federally legal cannabis products.

LawfulnessOk8997

How many are concerned about the lack luster response to DEA announcement? I thought with removal of 280e and many MSOs becoming profitable that there would be a quick redacting upwards of at least 30%. Well, we did get that but it lasted less than a day. You think you’d see such things as quick consider buying at these prices, but I don’t know if that’s happening. Somethings rotten in Denmark.

Davidinlbc

Everyone needs to "CHILL!". Tuesday was rumors from reliable sources. The DEA has yet to "sing"!

Davidinlbc

What we heard are rumors from reliable sources. The DEA still needs to put their stamp on it to make it official!

CLYDEFR000G

It wasn’t just her reporting, she full on defended her stance in a long Twitter thread and replies. She said something like “it’s so frustrating telling investors over and over the ACTUAL FACTS and they keep replying saying you are wrong or lying” I never heard of her before the other day but to me I think she was just being willfully ignorant. Just because comment periods take forever for review in the past doesn’t mean Biden won’t throw a bunch of money at it and have the DEA hiring or working double time to complete it all before election. If she can’t admit that as a possibility and thinks it truly is cut and dry then idk can’t reason with insanity

soundofheart

Weed stocks DEA news finally catching up end of week and running next. Welcome to the next run! Cite: see that small GME pop that y’all keep denying going on right

Fuego1050

Lets think of it this way- Who is the next incremental buyer - and what do they need to see to allocate capital. ? Alcohol/tobacco/cpg long only institutional funds, hedge funds… etc Garland memo may open a space for all - and official DEA proposal with (60 day comment) will be the next shoe for that. Safer definitely does that - and may keep hedge funds interested if its to pass for sure. State led catalysts keep retail happy - as long as the companies keep growing/making cash. So selling should be limited - after a few have gotten a chance to exit.

PanicBuybeforeDump

Legal Consequences If Marijuana Moved to Schedule III Moving marijuana from Schedule I to Schedule III, without other legal changes, would not bring the state-legal medical or recreational marijuana industry into compliance with federal controlled substances law. With respect to medical marijuana, a key difference between placement in Schedule I and Schedule III is that substances in Schedule III have an accepted medical use and may lawfully be dispensed by prescription, while substances in Schedule I cannot. However, prescription drugs must be approved by the Food and Drug Administration (FDA). Although FDA has approved some drugs derived from or related to cannabis, marijuana itself is not an FDA-approved drug. Moreover, if one or more marijuana products obtained FDA approval, manufacturers and distributors would need to register with DEA and comply with regulatory requirements that apply to Schedule III substances in order to handle those products. Users of medical marijuana would need to obtain valid prescriptions for the substance from medical providers, subject to federal legal requirements that differ from existing state regulatory requirements for medical marijuana. Rescheduling marijuana would not affect the medical marijuana appropriations rider. Thus, so long as the current rider remains in effect, participants in the state-legal medical marijuana industry who comply with state law would be shielded from federal prosecution. If the rider were to lapse or be repealed, these persons would again be subject to prosecution at the discretion of DOJ. With respect to the manufacture, distribution, and possession of recreational marijuana, if marijuana were moved to Schedule III, such activities would remain illegal under federal law and potentially subject to federal prosecution regardless of their status under state law. [Legal Consequences of Rescheduling Marijuana (congress.gov)](https://crsreports.congress.gov/product/pdf/LSB/LSB11105)

-PsillyFunGuy-

Nobody here has an answer to that. But I think most of us expect upward trending from here, even if it’s a bit of a slog. I would personally think we’ll see another bump once it hits the federal register. But then again I would have never predicted the last couple days to play out like this, so wtf do I know. I hope once we hear it from Biden, garland, or a DEA official in person that will help too. I expect Biden to campaign on this so that should bring a lot of fresh money to the sector. Earnings next week for most of the tier 1’s should help too I’d think. I’m personally holding tight and adjusting my outlook (i.e., expecting a slow trend upward as opposed to the hype run I was originally expecting).

jmu_alumni

Correct, DEA will officially announce it by putting it in their register. Right now they passed it to the OMB to do their work (assumption is 1-2 weeks worth of work) then DEA does official announcement of their PROPOSAL

ChungusSpliffs

Can someone clarify for me... are we still waiting on official S3 announcement from DEA? I thought we got that Tuesday. Why are we at levels lower than when we were just anticipating news now?

ApostleThirteen

The Cole Memo stopped the DOJ (including DEA) from interfering with state-legal cannabis businesses. S3 won't make rec sales legal, so some people think that Garland, despite his flaccid hands, will issue some kind of memo that will do the same thing again.

PanicBuybeforeDump

**Legal Consequences If Marijuana Moved to Schedule III** Moving marijuana from Schedule I to Schedule III, without other legal changes, would not bring the state-legal medical or recreational marijuana industry into compliance with federal controlled substances law. With respect to medical marijuana, a key difference between placement in Schedule I and Schedule III is that substances in Schedule III have an accepted medical use and may lawfully be dispensed by prescription, while substances in Schedule I cannot. However, prescription drugs must be approved by the Food and Drug Administration (FDA). Although FDA has approved some drugs derived from or related to cannabis, marijuana itself is not an FDA-approved drug. Moreover, if one or more marijuana products obtained FDA approval, manufacturers and distributors would need to register with DEA and comply with regulatory requirements that apply to Schedule III substances in order to handle those products. Users of medical marijuana would need to obtain valid prescriptions for the substance from medical providers, subject to federal legal requirements that differ from existing state regulatory requirements for medical marijuana. Rescheduling marijuana would not affect the medical marijuana appropriations rider. Thus, so long as the current rider remains in effect, participants in the state-legal medical marijuana industry who comply with state law would be shielded from federal prosecution. If the rider were to lapse or be repealed, these persons would again be subject to prosecution at the discretion of DOJ. With respect to the manufacture, distribution, and possession of recreational marijuana, if marijuana were moved to Schedule III, such activities would remain illegal under federal law and potentially subject to federal prosecution regardless of their status under state law. Don't let Irwin Simon lie to you. [Legal Consequences of Rescheduling Marijuana (congress.gov)](https://crsreports.congress.gov/product/pdf/LSB/LSB11105)

cyrisk2001

Now that red Wednesday is over and bag holders capitulated, hopefully we trend upwards for the official DEA announcement.

jmu_alumni

Since confusion around medical market under S3 ChatGPT: The classification of a drug as Schedule 3 by the DEA does not automatically legalize its medical use across all states. While Schedule 3 substances have recognized medical uses and are less restricted compared to higher schedules, such as Schedule 1 or 2, the legality of medical use still depends on state laws. Each state has its own regulations regarding the medical use of controlled substances, and some states may have specific requirements or restrictions despite federal scheduling. Therefore, medical use legality varies from state to state.

Cautious_Lion_7722

Vivian is schedule 2 if you look on the DEA website

ApostleThirteen

It IS legal to import from Canada... Florida is one state thatb has FDA approval to import prescription drugs from Canada, and the DEA has granted Tilray/Aphria import licenses previously (for research). I've read that Tilray produces a gram of GMP-compliant bud for under $0.60 USD. If some states med program were disrupted (like how CURA pulled out of MA and was a med supplier), and needed product to supply the sick, I could EASILY see it happening, as so far, there is no interstate trafficking allowed. Another case where it would be probable is if FDA required ALL medical be produced at ISO/GMP standards, which not every MSO has, and it's likely they will be compelled to comply, cuz that's the laws on making medicine in the US.

Wan4trulove

Natalie FWIW is a journalist and a skeptic , she knows the bureaucratic red tape and how processes can drag on for years , but this is different , HHS completed the review in 10 months and DEA in just 8 months which is unprecedented (Remember they could've pushed this into years). So , by looking at everything , Biden wants this before election and things are moving in that direction. So , there is a high probability that we will get a final ruling by first half of October.

mr_molecular

How many times has the DEA proposed a schedule, then reversed after a hearing or public comments?

Many_Easy

Very true regarding reality check. It is still a relative “unknown” outside our bubble, BUT a very important step forward. Mainstream media sources reported it and NYT had a useful discussion this morning: https://podcasts.apple.com/us/podcast/the-daily/id1200361736?i=1000654299923 Cannabis discussion is gaining traction and Tuesday’s more “traditional” news coverage regarding DEA S3 decision shows how far we’ve come and how far we’ll continue to go. Valuations are the least of my concerns right now, because we are moving forwards in so many respects.

IndividualistAW

Look at the 6 month chart for CGC. It’s in a huge bull run that got a major boost on Tuesday. Bagholders with painful memories unloaded their bags. But big institutional money won’t touch it until the DEA announcement gets fleshed out. That’s going to take some time. Weeks, months even. But the White House is going to be applying pressure for concrete action before the election bc Brando wants to get re elected

DaveHervey

# Canadian marijuana producer Tilray posts second-best day ever after approval to import pot to US for medical study  CNBC PUBLISHED TUE, SEP 18 2018 9:04 AM EDT Canadian marijuana producer Tilray posts second-best day ever after approval to import pot to US for medical study  * Tilray will work with the University of California’s Center for Medicinal Cannabis Research to study the safety and efficacy of marijuana for a neurological disorder. * Wall Street heralded the go-ahead as a sign that the DEA is standing by its goal to improve resources and cannabis research. Shares of Canadian cannabis producer [Tilray](https://www.cnbc.com/quotes/TLRY/) posted their second-best day ever after the company announced approval from the Drug Enforcement Administration to import marijuana to the United States for medical research. The company’s U.S.-listed shares jumped 28.9 percent Tuesday with 19 million of the company’s 21.7 million floating shares exchanging hands. Shares are up over 400 percent in the past month. Tilray will work with the University of California San Diego Center for Medicinal Cannabis Research to study the safety, tolerability and efficacy of marijuana for a neurological disorder. “Tilray is proud to support this crucial research,” says Dr. Catherine Jacobson, director of clinical research at Tilray. “If this study can identify cannabinoids as a potential treatment for patients suffering from essential tremor, we can conduct further research and potentially provide alternative effective methods of relief for the high numbers of patients with Essential Tremor,” she added. Essential Tremor is a neurological movement disorder characterized by involuntary and rhythmic shaking, [according to the company’s website](https://ir.tilray.com/news-releases/news-release-details/tilrayr-receives-approval-us-government-import-medical-cannabis). Tilray added that ET affects 0.4 percent of the general population, with 4.6 percent to 6.3 percent of those 65 and older suffering from the condition. The UC San Diego clinical trial marks the fifth worldwide using Tilray’s cannabis. Other trials include a study at the University of British Columbia Okanagan on the impact of cannabis on post-traumatic stress disorder, a trial at the University of Sydney in Australia on chemotherapy nausea reduction and a study at The Hospital for Sick Children in Toronto on pediatric epilepsy. Tilray CEO Brendan Kennedy says clinical trials are a very important part of the company’s strategy.

roloplex

Anything can happen, but we are past the hard part (the DEA). The rest of the hangups are low probability events. The only big thing left to do is survive any GOP court challenges (and there will be challenges to the review process). So not 100% that we will get S3, but pretty certain.

A-Wise-Cobbler

They exported with Schedule I. All they need is an import license from DEA. It’s obviously not easy and they’d need to find a wholesale buyer but it’s not impossible to import.

halfbeerhalfhuman

ok so where is the document that the DEA released?

Sm4t

Regarding 2. Was there ever an official announcement, or were they all various leaks from ppl working at the DEA?

jmu_alumni

Few things: 1. Biden wants this done ASAP. There is more ability to move this faster than the speed we saw the DEA move. 2. Boris said 1-2 weeks based on conversations he has had with officials after the announcement was made. 3. While OMB is needs to give their opinion. Their opinion does not matter. Biden wants S3. Nothing OMB will say will change this.

FruitnVeggie

I think the market wants more certainty. Boris Jordan said that the OMB review should be completed within 1-2 weeks, at which point the DEA proposed rule and OLC decision will be available to the public. But the risk remains that the OMB review takes longer than that. I think SAFER is also adding to the uncertainty. If we get SAFER many of these companies become profitable, without it (and high interest rates) the outlook is less rosy.

VeryImpressiveChair

POTUS couldn't even overpower DEA's final say on rescheduling. Good luck Kevin, you'll need it

Woolf01

The federal register on the DEA website is where they post decisions on rescheduling once confirmed

Regular_Ad_2897

Any idea on how the White House Office of Management and Budget (OMB) would take to review DEA’s submission?

roloplex

No. Cannabis is regulated under the CSA. Congress would have to act to remove it or the DEA / HHS would need to go through the process which they are doing now. The president can't do an executive order to negate legislation on his own.

Fuego1050

I dont think its a matter of people seeing it as a rumor. But people willing to allocate millions of dollars to companies may be happy to let the balloon exhale and enter on official releases. They may also want to be calling their DEA/DOJ contacts and see legal/timing and otherwise

jmu_alumni

I personally don’t think this is bad and people are reading too much into it as he if he is trying to spread fud. It seems like to me is he just wants DEA to announce it already and move forward and not have these rumors. But yes, delivery could have been better.

Fuego1050

Echelon : (on non official announcement) This leads us to believe that the DEA has reached a Schedule III decision. After the news, the AdvisorShares Pure US Cannabis ETF (MSOS-ARCA, NR) closed up 24.8% on Tuesday, though it has given back more than half of those gains with a decline of 15.0% on Wednesday. We view this as a buying opportunity for long-term investors, as the rescheduling progress has been substantially derisked with this week’s reports and confirmation by the DOJ Director of Public Affairs.

jmu_alumni

Yea, I guess you can make a good case for it before hand. Still is weird to me as I look at the DEA as a department that should not be worried about financial impacts to their recommendations as that is not a pillar in their assessment. In my mind that can be a first step post proposal. I guess if you think about it, they did exactly what I am saying, recommending S3. Just didn’t do it publicly yet and is contingent upon OMB review….which wont change a damn thing lol.

jmu_alumni

I still don’t fully understand why OMB needs this prior to DEA proposing S3. That seems like an after step based on my understanding of the role of OMB. Anyways doesn’t matter, but just doesn’t click with me

rubens33

We haven't heard from the DEA right? Is this the official announcement for schedule 3 we have been waiting for or is more coming?

rubens33

We haven't heard from the DEA right? Is this the official announcement for schedule 3 we have been waiting for or is more coming?

rubens33

We haven't heard from the DEA right? Is this the official announcement for schedule 3 we have been waiting for or is more coming?

PIMP420757

People have realized it’s basically already legal by default. How many people do you know who want to smoke weed but don’t because it’s a schedule 1 drug? Most people dont know shit about the Controlled Substances Act or the monopoly DEA has over all this shit. i live in VA and I can grow 4 plants legally, which is about a pound 2-3 times a year I certainly don’t need Tilray or Canopy to show up and sell me their over priced shit.

soundofheart

Also keeping an eye on the MJ stocks today especially after the Schumer talks. DEA reschedule is certain and that’s not priced in.

mtoto17

The amount of crying here is beyond belief NGL. Anybody who thinks these stocks are not gonna trend strongly upwards after DEA confirmed is deluded.

No_Love_Gained

It's almost exactly the same thing that was said about the DEA review period, and it took exactly 8 months. Make of that what you will. Glta

Hbrich3

Doesn’t feel like it but MSOS has been in a strong uptrend since end of Oct. DEA SIII confirmation only adds to the momentum and will start attracting fresh new investors to the sector. Bullish from here on out for me. These MSO’s are wayyy undervalued

OkayShill

These are separate legislative acts and are different from the HHS / DEA's rescheduling announcement.

immunityfromyou

I’ve been in this shit for years. Yesterday I recommended my friend to throw a couple thousand dollars at CGC or MSOS because of the DEA news. I hope he forgets everything I told him.

262Chief

Resched Risk..... Even if moved to Schedule III, the cultivation, manufacture, distribution, and sale of cannabis by state-regulated businesses that do not produce or sell FDA regulated products remains illegal under federal law. Unless and until the United States Congress amends the CSA with respect to cannabis, there is a risk that federal authorities may enforce current U.S. federal law. Currently, in the absence of uniform federal guidance, enforcement priorities are determined by respective United States Attorneys. If cannabis is re-categorized as a Schedule II or lower controlled substance, the resulting re-classification would result in the need for approval by United States Food and Drug Administration, or FDA, if medical claims are made about any medical cannabis products. As a result of such a re-classification, the manufacture, importation, exportation, domestic distribution, storage, sale and use of such products could become subject to a significant degree of regulation by the United States Drug Enforcement Administration, or DEA. In that case, companies may be required to be registered to perform these activities and have the security, control, recordkeeping, reporting and inventory mechanisms required by the DEA to prevent drug loss and diversion. Obtaining the necessary registrations may result in delay of the manufacturing or distribution of cannabis products. The DEA conducts periodic inspections of registered establishments that handle controlled substances. Failure to maintain compliance could have a material adverse effect on business, financial condition and results of operations. The DEA may seek civil penalties, refuse to renew necessary registrations, or initiate proceedings to restrict, suspend or revoke those registrations. In certain circumstances, violations could lead to criminal proceedings. Should the United States federal government legalize cannabis, it is possible that the FDA would seek to regulate it under the Food, Drug and Cosmetics Act of 1938. Additionally, the FDA may issue rules and regulations, including good manufacturing practices related to the growth, cultivation, harvesting and processing of medical cannabis. Clinical trials may be needed to verify efficacy and safety of any medical cannabis products.  It is also possible that the FDA would require that facilities where medical-use cannabis is grown register with the agency and comply with certain federally prescribed regulations. In the event that some or all of these regulations are imposed, the impact on the cannabis industry is uncertain and could include the imposition of new costs, requirements, and prohibitions. Inability to comply with the regulations or registration as prescribed by the FDA may have an adverse effect on our business, operating results, and financial condition.

DirtyBirdie99

Right, so Biden ordered it, HHS said sched 3, DEA agrees, and OMB is gonna shoot it down? Not a chance…. Like 0%

reclusive_trap

Once the DEA's rescheduling decision is finalized, it will not take effect immediately. Before implementation, the proposal needs approval from the White House Office of Management and Budget (OMB) and must undergo public comment. The final rule, after OMB approval and publication, could take several months to complete. Marijuana's federal status will then change 30 days after the DEA's final rule is published in the Federal Register. 

Livid-Character-9830

What reality? What have HHS and DEA done ?

theprinterison

Yes this is true. They are more valuable of a commodity than cannabis may ever be. Corn and soybeans are processed and included in many forms of food. Every human on earth needs to eat. Not to mention we also feed our livestock feeds that mainly contain these foods. Not everyone consumes cannabis products. There is a massive oversupply of cannabis that is not going away ever. There will be winners in the cannabis industry no doubt but your guess is as good as mine who that will be. The rescheduling today does some good things but most cannabis stocks are selling off (buy hype/sell news) and now have to deal with the DEA and potential audits in the future which is a good thing I guess.

BloominVeg

Hmmm there's an election every two years hmmm. He appointed cannabis friendly DEA and HHS heads right after taking office hmmmm hmmmmm. You must be a researcher hmmmm hmmmm

BloominVeg

you think reality is funny. maybe you missed what the HHS and DEA have done.

optimaleverage

And that was with the DEA making exceptional time in issuing their report!

figuring_ItOut12

Congress has no role in legislation affecting the cannabis sector? Once the DEA drops S3 Congress is going to be all over this sector.

rawbdor

The article does not support your conclusion that the ultimate goal is to delist it entirely. The article says 12 Democrats think it should be delisted. The article says nothing about the Biden administration, DHHS, or the DEA taking a position on this issue at all, much less considering delisting it entirely. You've already moved the goal posts from assuming the conclusion that it will be delisted, to instead saying it's a goal for it to be delisted. I'm wondering if you'll move the goal posts further, perhaps to a luke warm "some people think" it should be delisted.

Kutukuprek

The rollercoaster continues. I don’t like it any more than any of you do but for those with an investment mindset, today was an opportunity to buy. If we take a step back, the financials of the biggest companies in the space, if legitimized, should probably be 2-3x the current prices. As a 7 year long investor (and massive bag holder) in the space, I had much bigger worries the last couple years — whether it’ll be legitimized at all.. in this decade or maybe even my lifetime. The recent moves are historic and is a critical step in legitimizing US MSOs. So that worry has been rested, it’s now a much more tangible time horizon and I think everything including uplisting is likely to happen within the next 4 years (assuming Biden is re-elected). Super frustrating day, but at least the whole HHS/DEA thing from end of last year wasn’t a false dawn. It’s actually panning out. That was probably the real biggest worry of everyone who’s long in the space.

Unaphotobomber

I am NOT trying to spread FUD, but I'm really starting to worry that the great salvation might not come if we can't sustain a rally for more than an afternoon. Is the thought that the real rally will happen once we officially hear from the DEA? Cause if S3 is as sure of a thing as it seems, I don't understand why we'd retrace yesterday almost to the penny, even with profit taking. Been here since 2020 and started buying shitty weedstocks in 2017 not knowing what I was doing. I this sector is volatile as fuck, but damn, it still manages to surprise me. That said, I'm not selling. I've only ever invested in this sector because of the thesis that we're in the industry early and that it's a popular product with a lot of room to grow.

thedmob

Short sellers reading this thread and loving it! I am just really really really really glad I no longer have to worry about DEA coming back with schedule 2. That would have fucking destroyed my portfolio. If we trade sideways for a while that is a lot better than what we would have done with no news or bad news. I’m holding. I’m good.

saw-it

I’ve been in a coma since 2018. Just woke up to news about the DEA rescheduling marijuana. How are my TLRY stocks doing that I bought in 2018?

CaoNiMaChonker

It's just bagholders selling the pump. I don't think the DEA has directly come out and said it yet so it's just a secondary source

Fuego1050

Lots of volatility with no custody. Will be interesting to see if proposed DEA rule comes with Garland memo.

jmu_alumni

Everybody selling today I bet will attempt to be back in prior to the DEA press conference in a few weeks. Selling now is only for a short term trade. Long term big changes coming ahead

-PsillyFunGuy-

DEA reports to DOJ. DOJ is the statutory authority for rescheduling. DOJ’s confirmation is an official recognition that schedule 3 is happening.

Icankickmyownass

40% cheaper my ass, location dependent. Those drinks suck too lol ready to go in 50 states, not flower just drinks? Sounds like indian gas stations and their delta 8. Why would the states allow competition for their distribution centers/dispensaries for flower, concentrate..key word. States. Our dispensaries sell eachother’s weed here. There is no competition, prices stay high. My state did a lotto system for cities, there’s plenty of Americans that want in the business that didn’t get lucky and picked. Why give up jobs? Taxes are controlled on a city, county basis so the county over may have cheaper weed. DEA reschedules and everyone registers with them. I don’t believe rescheduling in the US does what you think it will for TLRY.

thedmob

I am literally not rattled at all. While this was expected there was a very real chance the DEA would come back with sched 1, 2 or some wacky bifurcation. If that happened a number of companies would be insolvent and the valuations would have absolutely cratered. That risk is gone. Forever. Of course there will be profit taking but there is a lot more profit to be had. The fuckery on these stocks will continue as long as they are OTC. But macro supply and demand has shifted based upon this news. I only hold MSOs.

Woolf01

And DEA is taking that suggestion

Necessary-Peanut2491

It's an election year and this was coordinated with the release of the DEA's statement saying they're rescheduling. It's very unlikely they don't make a huge push for this timed to make the right news at the right time in the election cycle. Whether it gets done or not remains to be seen. But they're going to make this a major campaign issue.

chrundletheboi

Call me crazy but knowing the DEA they might be doing this just so they can fuck things up