Shares of Trulieve Cannabis Corp (TCNNF 2.95%) soared on Tuesday, finishing the day up 14.1%. The jump comes as the S&P 500 lost 0.3% and the Nasdaq Composite gained 0.2%.
The cannabis stock is surging after President Donald Trump confirmed a report that his administration is exploring marijuana reclassification -- a shift that could reshape the cannabis industry and have an immediate impact on Trulieve's business.
OTC: TCNNF
Key Data Points
Trump opens door to cannabis reclassification
Speaking to reporters from the Oval Office on Monday, Trump said he is considering moving cannabis and cannabis-related products to Schedule III controlled substance status, noting that "a lot of people want to see it."
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Truelieve would benefit greatly from a rule change
For Trulieve specifically, the implications would be significant. It's one of the few cannabis companies that actually turns a profit before taxes, thanks largely to its dominant position in Florida's medical marijuana market. Reclassification would allow the company to drastically reduce its tax burden.
Of course, there's no guarantee that any of this will happen, and the stock will likely remain volatile until there's more regulatory clarity. However, for investors comfortable with that uncertainty, it is one of the companies that would benefit most from reclassification in the near term.
