III

phatbob198

>**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. I of course only suggest adding *meaningful* comments of support.

agedoak31

Imagine he just throws CAOA to a vote and it passes now that schedule III is happening

p3pp3rjack

Why would they be able to uplist due to schedule III? Wouldn't the fact that they are selling recreationally, which would still be federally illegal, keep them from being able to uplist?

inaptitude

Important section: "DOJ has concluded that this action may have a significant economic impact on a substantial number of small entities under the Regulatory Flexibility Act, 5 U.S.C. 601 et seq. For example, section 280E of the Internal Revenue Code bars businesses from claiming tax deductions for otherwise allowable expenses where the business “consists of trafficking in controlled substances (within the meaning of schedule I and II of the Controlled Substances Act).” 26 U.S.C. 280E. If marijuana is ultimately transferred to schedule III, section 280E would no longer serve as a statutory bar to claiming deductions for those expenses. In addition, small entities engaged in research on marijuana may be subject to different research protocols set by DEA if the research is conducted on a schedule III substance rather than a schedule I substance.41 However, DOJ is currently not in a position to estimate the number of small entities affected by these or other potential effects of this action. DOJ seeks comment and additional information to inform its analysis."

DanqueLeChay

So, moving marijuana to schedule III means that producers can now deduct overhead costs. Something that was not allowed when marijuana was schedule I. Source: 26 U.S.C. § 280E #

Ultrabananna

Wait WTH heroin is schedule III? Who the hell is getting heroin on the streets so easily?

RandomGenerator_1

Statement from Jim Cole, NCR Advisory Board Member and former U.S. Deputy Attorney General for the United States: “The announcement by the Biden Administration is one of tremendous importance and substance and should be applauded. The DEA recommendation of Schedule III is an important first step – it’s truly historic and its importance cannot be understated – but it does not solve all of the issues presented by the current approach to the regulation of cannabis in this country. What is really needed is for Congress to act to create a unified regulatory environment that involves both the states and the federal government. By recognizing, as the federal government has done, that cannabis does have valuable medical applications and with the overwhelming legalization in the states, Congress must face the simple reality that cannabis is and will be present in our society and do its duty by providing for the safest and most effective regulatory environment to exist.”

mylastdream15

That marijuana is going to be reduced to a schedule III drug in the US officially???? You know... The type of news that would dramatically impact the price of weed stocks? LOL

andrewbiochem

Why is schedule III important you ask? Good for taxes. Good for research funding. Good for acceptance and getting rid of the refer madness stigma. Good for insurance coverage. Good for standardization and quality control. Good for veterans access. Good for International trade. Good for tech development. Good for opening the doors to banking and businesses. Good for uping the chance SAFER gets passed later this year. Good for decriminalization. Good for reduced criminal justice burden. Good for accessing capital. Good for getting other things passed. Good for easing up on drug testing and other restrictions. Good for worldwide sentiment (they care more about feds than states). Good for getting out in the news cycle as this gets finalized in the coming months. Good for getting attention during the boon election cycle.

mrpuma2u

Looks like Marijuana reclassification a real thing, from Sched I to sched III. [The Cannabis Crossroads: How Schedule III and The Farm Bill Intersect (forbes.com)](https://www.forbes.com/sites/roberthoban/2024/05/03/the-cannabis-crossroads-how-schedule-iii-and-the-farm-bill-intersect/?sh=3d3fe55d2e8f) $TLRY to da moon?

PauliesWalnut

“PresidentJoe Bidensaid cannabis is being moved to Schedule III category, which means it has both medical benefits and some potential for abuse, from Schedule I, which is the most severe classification under the Controlled Substances Act.” “At Schedule III category, marijuana’s classification was the same as heroin.” …OP is a special type of regarded.

RandomGenerator_1

Excellent. Totally destroys any legal prohibition arguments. - validates the 2 factor test from HHS as sufficient. So the process used is legit - stresses that it makes no sense to say that FDA clinical trials are necessary for rescheduling, but making those trials nearly impossible by keeping it schedule 1 - stresses that the fact that state-medical profesionals recommend marijuana for certain medical conditions validates its medical use - no treaties are violated, and it is not necessary to restrict rescheduling to 1 or 2. Schedule 3 is a viable option. Additional controls necessary. - " even if marijuana were listed in Schedule III, most of the United States’ Single Convention obligations would continue to be met. " - the rulemaking and comments will help shape the final ruling, but the DEA cannot deviate from the logic of HHS. They can't start making up their own medical and scientific case. They have to fall vack on the HHS assessment

cigarettesandwater

"It was Biden’s first time speaking out about the proposed rescheduling since his Justice Department recommended in April that marijuana be rescheduled as a Schedule III controlled substance, \*a classification shared by prescription drugs such as ketamine and Tylenol with codeine.\*"

Adult_Prodigy

Most importantly of all, the removal of 280E tax restrictions will increase the bottom line of every single one of these businesses by substantial margins, to the tune of billions of dollars. In the DOJ's own words: "DOJ has concluded that this action may have a significant economic impact on a substantial number of small entities" "If marijuana is ultimately transferred to schedule III, section 280E would no longer serve as a statutory bar to claiming deductions for those expenses"

pm_me_ur_demotape

When will we get more info on Schedule III?

pm_me_ur_demotape

When are we gonna get an update on Schedule III?

creedthoughtsblog

looooooooool did Biden correct his tweet from schedule III to I? like seriously?

halfbeerhalfhuman

TLDR: The Department of Justice (“DOJ”) proposes to transfer marijuana from schedule I of the Controlled Substances Act (“CSA”) to schedule III

ElevatorScary

I’m so glad I can finally chill out and get imprisoned for possessing a schedule III controlled substance instead of back when it was insane and the same thing happened but it wasn’t historic

Zestyclose_Hippo_116

President Biden @POTUS · 35m Too many lives have been upended because of our failed approach to marijuana. So today, the @TheJusticeDept is taking the next step to reclassify marijuana from a Schedule I to a Schedule III drug under federal law.

Ok-Replacement9595

As explained in more detail below, we conclude, first, that DEA’s current approach to determining whether a drug has a CAMU is impermissibly narrow, and that satisfying HHS’s two-part inquiry is sufficient to establish that a drug has a CAMU even if the drug has not been approved by FDA and would not satisfy DEA’s five-part test. Second, we conclude that HHS’s overall CAMU recommendation is not binding on DEA. We also conclude that the scientific and medical determinations that underlie HHS’s CAMU recommendation are binding, but only until the initiation of formal rulemaking proceedings. Once DEA initiates formal rulemaking, HHS’s determinations no longer bind DEA, but DEA must continue to accord HHS’s scientific and medical determinations significant deference, and the CSA does not allow DEA to undertake a de novo assessment of HHS’s findings at any point in the process. Third, we conclude that neither the Single Convention nor the CSA requires DEA to place marijuana in Schedule I or Schedule II. Both the Single Convention and the CSA allow DEA to satisfy the United States’ international obligations by supplementing scheduling decisions with regulatory action, at least in circumstances where there is a modest gap between the Convention’s requirements and the specific controls that follow from a drug’s placement on a particular schedule. As a result, we conclude that DEA may satisfy the United States’ Single Convention obligations by placing marijuana in Schedule III while imposing additional controls pursuant to the CSA’s regulatory authorities.

noobstockinvestor

NEWLY PUBLISHED OLC OPINION: Questions Related to the Potential Rescheduling of Marijuana CONCLUSION: We therefore conclude that both the Single Convention and the CSA permit DEA to place marijuana in Schedule III while imposing additional controls, pursuant to the CSA’s

rainawaytheday

Timing. “The process of rescheduling a drug or substance typically takes several years and, in some instances, has taken up to nine years to complete. However, there is ample evidence that the timeline for cannabis rescheduling will move quickly (and will likely continue to proceed) given President Biden’s frequent mentions of cannabis rescheduling efforts and because of the presidential election. When HHS issued its recommendation to reschedule Marinol from Schedule II to Schedule III in 1998, the NPRM was published in the Federal Register 57 days later, and the Final Rule became effective 180 days after that. Also, when HHS issued its recommendation to reschedule hydrocodone combination products in 2013, the NPRM was published in the Federal Register 73 days later, and the Final Rule became effective 176 days after that. However, even if the OMB took a full 90 days for their review, the notice-and-comment period (including the ALJ hearing process) concluded at the expiration of this 60-day window, and the final rule becomes effective 30 days thereafter, the rule could become effective before the November election. So, there is precedent for a quick timetable.”

Terrible_Champion298

Truth. But I’m a trader. Always going to be that way. Sometimes that’ll be less good than today. Traders trade. But not gonna lie, the meme stock thing was and remains fun. Former SEC Chairman Forgotten Somebody III remarked that the current meme interest is gambling and troublesome. I’ve got a message for him, “Welcome to the real America, and FU.”

mealucra

From the [Marijuana Herald](https://themarijuanaherald.com/2024/05/vice-president-kamala-harris-to-advocate-for-marijuana-legalization-following-descheduling/): >Now, a campaign official tells us that once the move to Schedule III is complete, Vice President Harris plans to put her full support behind efforts to deschedule and legalize marijuana.  + >In January, a DEA official told us that marijuana would be rescheduled “before the end of summer”, an outcome that is likely to be met. When, not if. LFG 🤘

Wreckzone

Not to mention reclassification to schedule III by the DEA!!

roloplex

The move to III is awesome, but do voters actually care? We do of course because 280E is a big deal for weedstocks, but for your average 20 year old voter it won't make a lick of difference. If you live in a blue state, you will continue to be able to purchase cannabis without issue. If you live in a red state, cannabis will still be illegal.

RedTruck1989

Isn't Basel III another huge concern. I heard that if the capital holding requirements are raised again that banks won't have enough liquidity to make loans. Add on interest payments to deposits and I see more bank failures ahead. The cheap money well has run dry.

Living-Philosophy687

where did you get the idea that Iran and Israel are trying to start World War III that’s a misconception which is an underlying flaw in your analysis

LaykeTaco

Fuck…. How many do you tick? Sure, here's a quick outline how to quickly loose money: I. Impulsive Investing A. Lack of Research B. Following Hype and Trends II. High-Risk Trading A. Overleveraging B. Speculative Options Trading III. Emotional Trading A. Panic Selling B. Chasing Losses IV. Ignoring Diversification A. Putting All Eggs in One Basket B. Disregarding Asset Allocation V. Timing the Market A. Trying to Predict Short-Term Movements B. Failing to Stay Invested for the Long-Term VI. Falling for Scams and Schemes A. Ponzi Schemes B. Pump and Dump Schemes VII. Neglecting Risk Management A. No Stop Loss Orders B. No Exit Strategy VIII. Borrowing to Invest A. Using High-Interest Loans B. Margin Trading Beyond Means IX. Overconfidence Bias A. Failing to Recognize Risks B. Believing in "Surefire" Strategies X. Not Learning from Mistakes A. Repeating Same Errors B. Not Seeking Professional Advice

Thepaladin_princess

Far away? Phase III comes out in Q4 or early next year .. this stock didn’t have any of the good news or information that it has now when the stock was $123 five years ago. This stock has the upside of going to 500+ .. of course it has the downside of failing but you shouldn’t be investing into biotech stocks unless you already know that!!

roloplex

also keep in the back of your mind that rescheduling will most likely be challenged in court as well. If the GOP pulls a friendly judge, it could be dragged out. If it slips to after the election, there is also a possibility that a new AG could mothball it. For sure we are most likely headed for III, but I'll feel much better when it is a done deal.

SPAC_Time

GP-Act III Acquisition Corp. Announces the Pricing of $250 Million Initial Public Offering - GPATU "Each unit consists of one Class A ordinary share and one-half of one redeemable warrant, each whole warrant entitling the holder thereof to purchase one Class A ordinary share at a price of $11.50 per share," "While the Company may pursue an initial business combination target in any industry or geographic location (subject to certain limitations described in the Company's prospectus), the Company intends to focus its search on high potential businesses based in the United States." New SPAC starts trading today.

timeistheonlymoney

1. Vision Pro was not a dud. It's like every single other Apple Pro device. The premium is high, the target market is developers and content producers, and version 1.0 of such is going to require time for them to ramp up. I'm actually surprised that so many are moving so fast with new creations. It's a great new opportunity for anyone with the imagination to see where we're headed. No longer constrained to antiquated rectangular screens of windows. 2. meh, as an investor it's a little disappointing to hear that iPhone sales are down, but from a macroeconomic perspective ALL things are down right now. Our government is attacking the working class right now, and the Fed bankers have been very clear about this. They want a weaker working class. So, people don't even have money for food and housing now. They'll certainly hold on to their devices a while longer. YET, as a consumer, almost no Apple users switch to non-Apple devices. So, give it a year or so, and they'll buy another iPhone. Especially with the trends in new platform and content development. These products will compliment the iterative progression of MR/VR/AR and more. 3. 14% growth in services, and if you're really paying attention, Apple is still adding to those services. How much more did you want than that. It's really impressive, but I guess we could ask for 100% year after year growth, but I'm happy with 14% 4. I'm cool with that. Apple can and does invest in the best businesses when they spot one. This time around, the best they spotted was Apple. And I have other dividend investments, so I'm cool with the growth tactics instead for this one. 5. Is the world preparing for World War III? There are very large geo political trends right now that make all of this a bit worrisome, but if that comes to fruition, I don't think many of us are going to be concerned with AAPL. 6. You're doubling down on this dud idea aren't you. The Vision Pro v1.0 is a "dud" in the same sense that iPhone v1.0 was a dud. The difference being that with the AVP and future lines of this product, there is already a large body of developers and content creators who are on board and rolling. Their productions will come faster, much faster than the iPhone ecosystem. Something you don't mention is that Apple has a unique position for deployment of decentralized AI. Their strategy of producing high performance, low power consumption CPUs, that enable on device neural network training combined with a user base in the billions is something that is going to blow Open AI and similar competitors in generative AI out of the water. Yet, that isn't how Apple moves their chess pieces. You aren't going to see Apple chanting AI AI AI AI AI. Instead they'll slyly roll out features and services that leverage their huge user base and provide delightful new experiences, that just integrate fluidly, seamlessly, and become normal parts of people's lives. Meanwhile MS is going to be floundering around with their chat bots, and Google is going to try to make smarter search results. They are not the same, and Apple will go from being silent on the matter, to silently being the leading provider of AI services.

Mango-Bob

Jesus Jefferson Wayne Washington, III. THIRD PARTY SPLITS THE KINGDOM OF GORB!

Rahkrahk

You make a good point that PAH is rare. Although great financial appetite (and besides possible other indications such as other variants of PH, HF, etc.) at least initial global impact for just PAH won’t really be noticed by the general public. There was no room for this is in the main post but what I’m the most interested in, in regards to Cereno, is what will happen with the anticoagulant landscape going forward. The patents for Factor Xa inhibitors, today's prevalent anticoagulant treatment, have begun to expire. Speaking of BMS, for instance, they sell their flagship Eliquis (Apixaban) alone for about $12B annually; that patent expires in 2026. The CBO of Cereno stated last year that the company is in contact with at least the five biggest big pharmas where there is great interest in Cereno's candidates and portfolio as a whole. He further mentioned that great care should be taken to choose the big pharma that fits best for each project. Why has interest grown so much? There is one specific decisive reason that I’m sure retail investors have missed. The phase II results for the Factor XI candidates from three big pharmas: Asundexian (Bayer) and Milvexian (BMS and J&J). These were seen as the next generation candidates to replace the mega block-busters Xy and represented the greatest hope in anticoagulation. At ESC -22, the big pharma that could present decent results from its respective Phase II would take a huge step forward as the likely next generation leader in the category of ailment that kills the most people in the world. But disaster struck - Neither Asundexian nor Milvexian were able to demonstrate efficacy as hoped. To further demonstrate the potential of this market and how eager big pharma is to succeed here, both parties still decided to invest significant capital to proceed with Phase III. It is not without reason that Holinstat refers to a successful outcome against thrombosis without the risk of bleeding as "the holy grail". At the very same conference, CS014 was presented with strong anti-thrombotic properties and without risk of bleeding. The result was "widely accepted" by the participants. And then there is CS585 with a completely different MoA. Which brings us to highlighting another point of yours – Merck being quick on the gun for Sotatercept. This can certainly turn out to be the case, especially when factoring in the anticoagulant market. The player that gets ahold of the next (true) generation compound would wreak havoc on competition, possibly transforming the BP landscape. Since summer -22, Cereno is with their two candidates besides CS1 in a leading position to supply the ammunition for the aforementioned war.

Opposite_Speaker8200

Hi u/Rahkrahk Thank you for the quick reply. I am simply nit picking on the actual graph saying that putting the data in the same way like this is to missrepresent it. The proper way in my opinion is to compare the data as is. The raw data from the Sota trials in one graph and the CS1 data (not yet fully disclosed) either on the left hand side or the right, with its own graph. This is important since we have differences between the MoA of the drugs, the timelines of the drugs and other aspects. Like patient stratification and the inclusion of the CardioMEMS from Abbot. I am aware that you know all of this, and my comment was meant to be a bit thought provoking since a person less informed regarding this case and the details might interpret the graph as is. Regarding projected value of Cereno as a whole is something of a tricky calculation to make. I would be surprised if BP would pay more than Merck did for Sota. Albeit, as you correctly point out, Cereno is grossly undervalued looking at the potential for a successful Phase 2 and moving the asset closer to Phase III together with a partner(s). I also think you are very much aware of the Swedish biotechs, which makes me think you are probably in the business yourself and highly likely living in Sweden. Also, your point at "dogs barking everywhere" in reference to the stock market and the industry. You have my full endorsement, we have just recently seen the fall of SynAct Pharma's stock price based upon questionable decisions from the company in their Phase III trial. Last point regarding Merck, there money making machine drug is about to end it's patent live cycle, they are in pursuit of a new blockbuster and are heavily invested in RnD and expanding these programs everywhere. With this in mind, they might have been a bit to quick on the gun in my opinion. PAH is a very rare disease. With around (best case) 500 new patients in the US per year. Standard of care is prolonging life and Sota is seeming to be doing a fairly good job with this as well. I know CS1 has the potential for remodelling of the vessels and the endothelial layers, which is why I wrote (miracle) since VPA is not a specific target molecule. And I fully agree with you again, combination therapy is something that is probably needed. The view of a magic bullet is a good marketing trick, nothing more :) In regards to the Chiesi deal I have to read more, but I think that the orphan drug market is lucrative for the purposes of several programs enabling the offloading of costs to both the state and insurance companies, which can enable the BPs to price the drug(s) at a premium. All in all, I am very bullish on Cereno, I think that they will have a home run in Q3 when the results are revealed. Great discussion!

_hiddenscout

More than likely they needed the money for a purchase, like a house or yacht. You have to remember that CEO's are mainly paid in stock and not a salary. [https://www1.salary.com/Ernest-Garcia-III-Salary-Bonus-Stock-Options-for-CARVANA-CO.html](https://www1.salary.com/Ernest-Garcia-III-Salary-Bonus-Stock-Options-for-CARVANA-CO.html) Looks like he's paid like 322K as a base salary, but receives like 5M in stock and options. Also not my area of expertise, but some of these sales are based on a schedule and I'm sure someone could fill you more details, but sometimes these sales are scheduled ahead of time. [https://www.investopedia.com/terms/r/rule-10b5-1.asp](https://www.investopedia.com/terms/r/rule-10b5-1.asp)

Tiaan

Ok, well the closest thing to that would be this confirmation from the [DOJ's director of Public Affairs that AG Merrick Garland circulated the proposal to reschedule cannabis from 4/30/2024](https://www.cnn.com/2024/04/30/economy/dea-marijuana-rescheduling): > “Today, [Attorney General Merrick Garland] circulated a proposal to reclassify marijuana from Schedule I to Schedule III,” Xochitl Hinojosa, the DOJ’s director of public affairs, said in a statement. “Once published by the Federal Register, it will initiate a formal rulemaking process as prescribed by Congress in the Controlled Substances Act.” We don't yet have a publicly available copy of the order to know whose signature is on it.

RandomGenerator_1

Federal Update on Cannabis Scheduling: Are State Legalized Cannabis Dispensaries to Become Pharmacies? "A controlled substance transaction under the framework of the CSA traditionally means that a controlled substance is manufactured by a DEA licensed manufacturer and distributed to a DEA registered and state-licensed pharmacy, which license and registration authorize the pharmacy to obtain and dispense controlled substances. ... Given the DEA’s recommendation of rescheduling cannabis to Schedule III, does the DEA intend to require medicinal cannabis dispensaries (or even adult-use cannabis dispensaries) to obtain pharmacy licenses from the States in which they operate and federal DEA registrations as is required under the CSA or will the DEA create an exemption from such licensure and registration? How state-legalized cannabis dispensaries (whether medicinal or adult-use dispensaries) will fit into the “closed and controlled system” under the current CSA framework is unclear at this point, but is certainly something for existing state-legalized cannabis businesses to consider as they exalt the DEA’s recommendation to reclassify cannabis. " https://natlawreview.com/article/federal-update-cannabis-scheduling-are-state-legalized-cannabis-dispensaries-become Valid questions. I wonder how it will go. Many months ago Georgia pharmacies attempted to dispense cannabis, but the DEA intervened. In a webinar with doctors and pharmacists there was this notion that this is the future.

DrRoxo420

I agree with you and I think everyone (some subconsciously) have realized that a Trump administration is a threat to schedule III.

WeedStreet420

We do NOT need Anne Milgram to sign the rescheduling order. In 1998 it was the DEPUTY ADMINISTRATOR of the DEA who signed the rescheduling of Marinol from Schedule II to Schedule III. "Under the authority vested in the Attorney General by section 201(a) of the CSA (21 U.S.C. 811(a)), and delegated to the Administrator of the DEA by the Department of Justice regulations (28 CFR 0.100) and redelegated to the Deputy Administrator pursuant to 28 CFR 0.104" The Deputy Administrator of the DEA is George S. Papadopoulos. [https://twitter.com/WeedStreet420/status/1787587894384714101](https://twitter.com/WeedStreet420/status/1787587894384714101)

RandomGenerator_1

Cannabis rescheduling may boost market, but banking uncertainties loom "WASHINGTON — The Drug Enforcement Administration's move to begin a process of rescheduling cannabis may have little immediate impact on the cannabis industry's access to banking services; it may, however, improve prospects for cannabis banking legislation to cross the finish line. .... "Schedule III would eliminate the cannabis industry's exposure to 280E … these businesses should realize a significant increase in both revenues and cash flow [that] will only increase their ability to qualify for lending products," he said. "It should also compel financial institutions serving the cannabis industry to extend additional credit products to cannabis related operators." Tony Repanich, CEO of Shield Compliance, a firm that aids cannabis businesses in legal and regulatory compliance, said the change in scheduling won't allow banks to suddenly provide services to cannabis companies because it does nothing to address the discrepancies between state and federal law. While Schedule III drugs have acknowledged medicinal uses, they're still subject to regulation and federal criminal prosecution for unauthorized trafficking. "It is, however, further indication that we're moving forward not backwards in terms of the federal government's approach to cannabis, [which] might encourage more bankers to enter the space," Repanich said. "There are an estimated 225 banks and credit unions actively serving the market today [and] this rescheduling will surely create conversations in the boardroom and may cause some financial institutions to take the leap." Banks that do currently provide some banking services to cannabis companies do so under guidelines laid out in a 2014 memo issued by the Treasury Department's Financial Crimes Enforcement Network, or Fincen. " https://www.americanbanker.com/news/cannabis-rescheduling-may-boost-market-but-banking-uncertainties-loom

Kbarbs4421

No, it won't. Still tbd as to when 280e removal will kick in, as well as what the Schedule III regulatory compliance structure looks like. We need to see a Final Rule and likely some additional Admin policy before we'll know what impact this has on fins. That said, I'll bet dollars to donuts that some companies start reporting "pro forma" figures that they claim reflects 280e removal. It'll be funded capacity all over again. If this proves true, be careful placing much faith in what you see.

phatbob198

The DOJ Director of Public Affairs confirmed news that a proposal to reschedule cannabis to schedule 3 has been moved to the OMB. >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

phatbob198

Here is the full text, since it is behind a paywall: >Many U.S. cannabis businesses could become profitable for the first time if the Biden administration follows through on its plan to reclassify marijuana as a less dangerous drug. >That is because the change could lift a heavy income-tax burden: Section 280E of the federal tax code currently bars cannabis businesses from claiming deductions on many basic business expenses. That rule often results in an effective tax rate of 70% or more, wiping out most licensed marijuana retailers’ earnings. >“It’s an absolute game-changer,” said Boris Jordan, executive chairman of Curaleaf Holdings, which operates 145 dispensaries and 19 cultivation sites across the U.S. “It’s something we’ve been waiting for, for the better part of 10 years.” >The proposed rule could take months to complete and could be further stalled by lawsuits. The public, including state regulators and marijuana companies, would have a chance to comment and the White House would have to sign off on a final version of the rule before it could go into effect. >Marijuana is legal in some form in 40 states and the District of Columbia, but is illegal under federal law—and would remain so even if the Drug Enforcement Administration moved marijuana from Schedule I to the less-restrictive Schedule III, equivalent to prescription medications such as anabolic steroids and some combinations of acetaminophen and codeine. >Cannabis businesses would still have to contend with limited access to banking services and financing. They still wouldn’t be allowed to transport marijuana across state lines. And companies that sell marijuana in the U.S. still couldn’t be traded on U.S. stock exchanges. >A national survey conducted in 2022 by Whitney Economics, a cannabis industry research firm, found that fewer than 25% of cannabis businesses were profitable. Licensed U.S. cannabis companies this year are expected to make $31.4 billion in sales and pay $2.3 billion more in federal taxes than they would under normal business tax rules, according to Whitney Economics forecasts. >For companies that have been hanging on in hope of one day making it into the black, the policy change could be transformative. Business leaders said they could use the cash to invest more in marketing, offer better benefits to employees and expand into newly opened markets such as Ohio. Industry leaders said they are also optimistic that the policy shift could reduce the stigma around cannabis, bring more investors into the sector and make federal lawmakers more open to legalizing marijuana. >Congress created Section 280E of the tax code in 1982, when Sen. Bill Armstrong (R., Colo.) tucked the provision into a larger bill as the federal War on Drugs was ramping up. >The law denies many ordinary deductions and tax credits to businesses that are “trafficking in controlled substances” listed under Schedule I and II. >When marijuana was illegal at the federal and state levels, that deduction limit had a relatively small impact, and it mostly gave U.S. authorities an additional tool to go after drug dealers and impose taxes on top of criminal prosecutions. But state legalization combined with Section 280E created an odd hybrid. The cannabis industry looked like regular businesses in many respects—except for the income-tax bills. >“Draconian, I think, is putting it lightly,” said Charlie Bachtell, chief executive of Cresco Labs, which has dispensaries and production facilities across eight U.S. states. For each of the past two years, Cresco has paid between $70 million and $80 million more in U.S. federal taxes than it would have under normal business conditions, he said. Despite the hefty tax bill, Cresco in the last quarter of 2023 became free cash-flow positive for the first time since it went public in 2018. >The cannabis industry has “really been kind of stumbling its way forward because of the economic burdens of 280E,” said Brian Vicente, a cannabis lawyer in Denver. >The current tax rules allow cannabis businesses to deduct their cost of goods sold, so growers that put most of their resources into production don’t get hit hard. Businesses closer to the consumer get hammered by Section 280E. For instance, a retailer selling clothes or food can deduct rent, marketing and wages when calculating taxable income. But a cannabis retailer typically can’t take any of those deductions. >“It’s impossible to make those numbers work,” said Wanda James, CEO and co-founder of Simply Pure Brands, which has a dispensary in Colorado and a new branch about to open in New Jersey. “It’s just a question of how long is your runway.” >James, a former Navy officer, restaurateur and political organizer, was among the first Black cannabis licensees in Colorado. She said the tax change could lower the barriers to entry for women, people of color and veterans, many of whom have struggled to keep their cannabis businesses afloat after winning state lotteries for social-equity licenses. >The tax change could also shrink the gap in profitability between legal and illegal cannabis businesses, helping licensed businesses that have struggled to compete with the black market. Unlicensed operations can sell marijuana at lower prices and pay fewer administrative and regulatory costs. >More broadly, moving cannabis to Schedule III could create an unusual tax regime. Businesses would still face significant state taxes and high costs for banking and other services. But cannabis would actually have more favorable federal tax treatment than alcohol and tobacco, which are subject to federal excise taxes on top of income taxes. >Sens. Chuck Schumer (D., N.Y.), Cory Booker (D., N.J.) and Ron Wyden (D., Ore.) are reintroducing legislation that would decriminalize marijuana and impose federal excise taxes of up to 25%.

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.

RandomGenerator_1

The Cannabis Crossroads: How Schedule III and The Farm Bill Intersect " I have personally been involved in establishing the distribution of such beverages in mainstream venues such as sporting events, festivals, concert venues, c-stores, thousands of liquor stores, and the like. It is widely believed that these low dose Hemp D9 beverages are here to stay, and for good reason – beer, wine, and spirit sales have dipped across the country for several consecutive quarters. ... This concept is further bolstered by the fact that the federal government is on a path to reschedule marijuana from the most restrictive category (Schedule I) to a far less restrictive category – Schedule III. While this process will take some time (as a technical matter) and could get delayed or procedurally paused by a new President with different policies, attention will continue to focus on federally legal and already de-scheduled Hemp D9. ... Various government policy groups, many funded by MSO groups who seemingly refuse to do what their shareholders want – sell more products! – and who refuse to embrace the tenets of the mainstream CPG industry, continue to push against the present Farm Bill language and are actively seeking to undermine the current language. I have reached out to two MSO groups for comment on this issue, but have not gotten a reply by the time of this publication. It seems odd to me that certain larger MSO groups fail to see that Hemp D9 products are in fact a lifeline if and/or when they fail to comply with the rigorous standards that are generally applicable to a Schedule III compound producer/seller/marketer/manufacturer. To put it simply, it is not a given that any state-licensed marijuana sector business will qualify to become approved under the applicable medical supply chain standards, or that the federal government would even entertain such an approval – again, more on that in a subsequent article. If nothing else, the current hemp language is their backup plan, but many apparently fail to see this. ... This is not to say that all MSOs and large-scale marijuana sector interests feel this way. In fact, I currently serve (and have served) as a strategic advisor to many such MSOs and large-scale marijuana sector companies and they have embraced this strategy; and they see the writing on the wall; and they want to have a backup plan under any circumstance. But several of these imterests seek to redefine 'hemp' to exclude any sort of so-called ‘intoxicating’ compounds and/or drive all such compounds into the economically challenged, less-than-mainstream, overtaxed, intrastate, closed-loop dispensary system. ... Various market and consumer studies have shown that many cannabis consumers do not want to walk into dispensaries…but they will walk into a convenience store or a liquor store. https://www.forbes.com/sites/roberthoban/2024/05/03/the-cannabis-crossroads-how-schedule-iii-and-the-farm-bill-intersect/?sh=7a1cc55f2e8f Some Sunday reading. I know of at least one company who is playing into this strategy: Tilray.

noodlesinsauce

RE: The USA MJ Opportunity On one end, no restrictions at all means unlimited competition for flower, though barriers of entry for non-flower will be high enough for businesses to create moats. On the other end, high restrictions like we have now means limited access to consumers, distribution and capital. And no meaningful (legitimate) business to drive share price. The thesis for US MJ has always been the limited license opportunities where a market has 15-30 approved businesses, and not free-for-all markets like California, Oregon and Washington where the margins are deeply compressed, which in turn leads to zero notable US MJ businesses flourishing at scale in the West coast. As investors, we should be careful for what we wish for in the removal of restrictions. We need regulatory capture to continue to exist in meaningful ways to limit competition so the US MJ businesses we've invested in are valuable. RE: Schedule III I can't tell if S3 is the optimal balance for regulatory capture. But it's better than what we have now, and it's clear there's still no path to unlimited competition. I think our only issue is the excessively long timeframe for changes in the space. There is high probability, maybe even certainty, that a dollar invested in US MJ will grow. But the long timeframe means that alternative investments like even M7 or S&P500 will likely yield better than US MJ in the same period of time. It makes US MJ unattractive. Personally, things need to move significantly this year for me.

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.

Many_Easy

Markets don’t like uncertainty. Schedule III is now a certainty. Markets are also forward looking and fundamental analyses include present value of discounted future cash flows. Current uncertainties are Germany Pillar II, ability for LPs to export to U.S. OR U.S. importing from Canada, Florida vote, Farm Bill revisions, SAFE(R), improved operating results, uplistings, improvements to existing management teams, M&A, institutional investors, Canadian excise taxes, and surprises. All one has to do is review the list and to be patient. S3 was a huge step forward.

Bossie81

The Company has generated material operating losses since inception. The Company has had recurring net losses since inception which has resulted in an accumulated deficit of $82,450,781 and $79,556,028 as of December 31, 2023 and 2022, respectively, including net losses of $2,894,753 and $2,470,161 for the years ended December 31, 2023 and 2022, respectively. Historically, the Company has relied upon investor funds to maintain its operations and develop its business. The Company needs to raise additional capital from investors for working capital as well as business expansion, and there is no assurance that additional investor funds will be available on terms acceptable to the Company, or at all. If the Company is unable to unable to obtain additional financing to meet its working capital requirements, the Company likely would cease operations.   The Company requires funding of at least $5 million per year to maintain current operating activities. Over the next 24 months, the Company believes it will cost approximately $9 million to: (1) fund the FDA approval process to conduct human clinical trials; (2) conduct Phase I, pilot, and clinical trials; (3) activate several regional clinics to administer IsoPet^(®) across the county; (4) create an independent production center within the current production site to create a template for future international manufacturing; and (5) initiate regulatory approval processes outside of the United States.   The principal variables in the timing and amount of spending for the brachytherapy products in the next 12 to 24 months will be the FDA’s classification of the Company’s brachytherapy products as Class II or Class III devices (or otherwise) and any requirements for additional studies, which may possibly include clinical studies. Thereafter, the principal variables in the amount of the Company’s spending and its financing requirements would be the timing of any approvals and the nature of the Company’s arrangements with third parties for manufacturing, sales, distribution and licensing of those products and the products’ success in the U.S. and elsewhere. The Company intends to fund its activities through strategic transactions such as licensing and partnership agreements or additional capital raises.  

Keith_13

That's how about machines work in a few jurisdictions that only allow class II gaming. The slot machines are designed to mimic a pull tab, which is allowed under class II. Pretty much everywhere that has casinos allows class III gaming, which has real slot machines (every spin is random and independent) If this is about AC casinos, they are class III so what you are saying is not correct.

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

talktothepope

Well, hopefully it expands on it a bit considering how long it's taken Garland to get it out there. Also a lot has changed in 10 years. I'll allow Garland the excuse of waiting til Schedule III, but it's time to get moving bro

DEASqueezeAllComing

Well I guess the timing of the reddit user saying he will switch from investing to smoking it (he said it in the morning of schedule III) is not so bad after all. He still has a second chance to do both

RandomGenerator_1

Issuance of import permit. (a) The Administrator may authorize importation of any controlled substance listed in Schedule I or II or any narcotic drug listed in Schedule III, IV, or V if he finds: (1)Click to open paragraph tools That the substance is crude opium, poppy straw, concentrate of poppy straw, or coca leaves, in such quantity as the Administrator finds necessary to provide for medical, scientific, or other legitimate purposes; (2) That the substance is necessary to provide for medical and scientific needs or other legitimate needs of the United States during an emergency where domestic supplies of such substance or drug are found to be inadequate, or in any case in which the Administrator finds that competition among domestic manufacturers of the controlled substance is inadequate and will not be rendered adequate by the registration of additional manufacturers under section 303 of the Controlled Substances Act (21 U.S.C. 823); or (3) That the domestic supply of any controlled substance is inadequate for scientific studies, and that the importation of that substance for scientific purposes is only for delivery to officials of the United Nations, of the United States, or of any State, or to any person registered or exempted from registration under sections 1007 and 1008 of the Act (21 U.S.C. 957 and 958). https://www.ecfr.gov/current/title-21/chapter-II/part-1312/subject-group-ECFRc11ae182f37bc43 Import/Export Permit Applications and Declarations https://www.deadiversion.usdoj.gov/imp_exp/imp-exp.html

262Chief

"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." This is a huge problemo for uplisting. Higher exchanges need the "safe harbour" of listed companies being legally compliant in all jurisdictions in which they operate. Unless this industry move beyond the 52 State stovepipe, legal and regulatory risks, the sector aint going anywhere big business wise and will remain a novelty. Ask Irwin.... Aphria owned and operated US asset and left the US because of regulatory/legal risk.

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)

PanicBuybeforeDump

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

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)

ArnoldRothsteinsAlt

Well it wasn’t legalized and schedule III is still controlled. So the only thing that changes is the prison becomes a jail. It’s still illegal lol.

sharmoooli

After Phase II, Phase III takes a long time. This is the stage where there's less exclusion criteria and they have to show the results categorically beat any currently on the market treatments.

A-Wise-Cobbler

MedMen is bankrupt. Schedule III won’t be official for a few months.

phatbob198

Once again, this is false. The DOJ Director of Public Affairs confirmed it himself. He 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 to Marijuana Moment on Tuesday evening. “Once published by the Federal Register, it will initiate a formal rulemaking process as prescribed by Congress in the Controlled Substances Act."

Gambelero

Very clever in his choice of words. “This will allow us to export medical cannabis.” Sure Canada will now let them export to the U.S., but no state allows imports. You can’t even ship from Georgia to Florida or California to Oregon. Schedule III might “allow” interstate commerce if states reach reciprocity agreements or possibly form commonwealth-like arrangements. Every state currently has its own particular regulatory framework and the MSOs work state by state within that framework. So, you have to carefully parse expressions like “allowed to export” or “interstate commerce permitted.”

-PsillyFunGuy-

It’s been posted ad nauseous in this sub but in case you can’t use google here is the quote from DOJ spokesperson Xochitl Hinojosa, “Today, the Attorney General circulated a proposal to reclassify marijuana from Schedule I to Schedule III.” It’s categorically not a rumor.

halfbeerhalfhuman

>"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 to Marijuana Moment on Tuesday evening. “Once published by the Federal Register, it will initiate a formal rulemaking process as prescribed by Congress in the Controlled Substances Act.” Is this the quote I see you keep posting? Im pretty sure it says clearly that nothing official has been posted yet. >“Once published by the Federal Register, Idk why you have to be so hostile though. Cant we all get a long. Just trying to rationalize price movement because if it was offical this wouldnt make sense. Thats all. Have a wonderful day <3

mealucra

WHY the fuck would he state this. We have a named source from the DOJ:  >“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 to Marijuana Moment on Tuesday evening. “Once published by the Federal Register, it will initiate a formal rulemaking process as prescribed by Congress in the Controlled Substances Act.” [sauce](https://www.marijuanamoment.net/dea-agrees-to-reschedule-marijuana-under-federal-law-in-historic-move-following-biden-directed-health-agencys-recommendation/) Funny thing is, I was about to invest in GTI but right then the entire board quit. That usually doesn't happen unless there's something wrong with management.  Agreed that his twitter should be taken away. 🤦‍♂️

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.

DEASqueezeAllComing

There's always going to be a bunch of bullies or trolls that like to stir BS. Joe Biden and Kamala Harris are serious about schedule III final ruling is all you need to know

skyplt29

From a 1 May Motley Fool write up.  I am not a big fan of MF, but do share this insight: If you ask me, though, the main reason marijuana stocks are selling off today is because marijuana investors made a lot of money yesterday, and they're cashing in their chips and taking profits. That's short-term thinking, however. Dropping marijuana two rungs to a Schedule III controlled substance is really good news for the industry and will accelerate the movement among states to legalize the drug both for medical purposes (as 38 have done) as well as for recreational purposes (as 24 have done). It will also provide some tax benefits for marijuana companies, permitting the deduction of certain operating expenses that could not be deducted when marijuana was a Schedule I drug. This will have a direct benefit for cannabis companies' bottom line, boosting profits and making marijuana stocks look cheaper as a result.

heizenbergbb

Remember that one night after hours when we thought world war III was starting, everyone was dumping the market, and Robinhood shut down their 24/7 trading during exactly the type of scenario you'd think it was designed for? Everyone moved on from that one pretty quickly.

creedthoughtsblog

“Today, [Attorney General Merrick Garland] circulated a proposal to reclassify marijuana from Schedule I to Schedule III,” Xochitl Hinojosa, the DOJ’s director of public affairs, said in a statement. “Once published by the Federal Register, it will initiate a formal rulemaking process as prescribed by Congress in the Controlled Substances Act.” god speed

A-Wise-Cobbler

If true this would validate my thought process. Other Schedule III drug manufacturers are on major stock exchanges. Why not marijuana producers if it gets rescheduled. Only stumbling block is retail is still illegal, which other Schedule III manufacturers obviously don’t do. Though since marijuana companies only operate in rec markets where it is state legal to do so. So … 🙏 … I hope 🤞

oldschoolczar

From u/Throwing_Horns Safe Harbor Financial CEO Sundie Seefried: The profound impact of rescheduling cannabis from Schedule I to Schedule III signifies a crucial shift in the perception of cannabis, recognizing its medical potential and solidifying its legitimacy in the financial realm. From a banking and lending perspective, we believe that the reclassification of cannabis will broaden lending opportunities for cannabis businesses, leading to access to lower interest rates, increased access to capital and improved financial stability across the industry. This newfound access to traditional financing channels has the potential to stimulate growth, innovation and compliance efforts within the industry, ultimately fostering economic development and job creation.

IceCoastRep

I think the news isn't as good as what people expected. It would now be a Schedule III drug....which includes ketamine, anabolic steroids, etc....which are still controlled substances. So it's not legal for recreational use at a federal level still. Everyone got excited on the news thinking it was going to be legal.

Cfrant190

How is no one mentioning that the title is wrong? Its not being delisted… its being reclassified from schedule I to III. That does not equal legal and also doesnt equal delisted

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.

DEASqueezeAllComing

24 hours ago, I was talking about a t-shirt I want to design to celebrate schedule III. Now I don't even want to have the reddit username I have , what a turm of events hahaha. Eventually we will rise from the ashes and defeat all the manipulation

Throwing_Horns

>**Safe Harbor Financial CEO Sundie Seefried:** *The profound impact of rescheduling cannabis from Schedule I to Schedule III signifies a crucial shift in the perception of cannabis, recognizing its medical potential and solidifying its legitimacy in the financial realm.* >*From a banking and lending perspective, we believe that the reclassification of cannabis will broaden lending opportunities for cannabis businesses, leading to access to lower interest rates, increased access to capital and improved financial stability across the industry. This newfound access to traditional financing channels has the potential to stimulate growth, innovation and compliance efforts within the industry, ultimately fostering economic development and job creation.*

CoolFirefighter930

This is correct, and legalization still has a long way to go . Is the schedule III in writing and approved yet?

MostlyH2O

Schedule III is not remotely close to legalization.

Jumpy_Elevator_6603

Think I'll homestead on the moon and sell all that sweet sweet helium III 

MrK81

What I'm reading is that Garland has, "circulated a proposal to reclassify marijuana from Schedule I to Schedule III" and that "once published by the Federal Register, will initiate a formal rulemaking process as prescribed by Congress in the Controlled Substances Act". Thoughts on action once it is actually published to the Federal Register?

theduderino38

lol yes ridiculously masochistic investments haha The way I see it- the start of the game and 1st inning is starting when Fed Registry is updated and sched III is on a Fed website. This is when the real game starts

sendnudezpls

Whoa down 5%?! Sounds like it's time for me to panic sell my GTI holdings that I've owned since 2018 - right before the impact of schedule III will drive enormous fundamental improvements, M&A, investment, uplisting, etc. ... lul no.

Business_Knee6165

Yes an official did state this: “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 to Marijuana Moment on Tuesday evening. “Once published by the Federal Register, it will initiate a formal rulemaking process as prescribed by Congress in the Controlled Substances Act.” https://www.marijuanamoment.net/dea-agrees-to-reschedule-marijuana-under-federal-law-in-historic-move-following-biden-directed-health-agencys-recommendation/

phatbob198

>"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 to Marijuana Moment on Tuesday evening. “Once published by the Federal Register, it will initiate a formal rulemaking process as prescribed by Congress in the Controlled Substances Act.” https://www.marijuanamoment.net/dea-agrees-to-reschedule-marijuana-under-federal-law-in-historic-move-following-biden-directed-health-agencys-recommendation/

phatbob198

>"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 to Marijuana Moment on Tuesday evening. “Once published by the Federal Register, it will initiate a formal rulemaking process as prescribed by Congress in the Controlled Substances Act."

PMMeForAbortionPills

But banks finance Schedule III drug sales all the time. I don't get it

An-Okay-Alternative

The federal government has stood by while state level marijuana programs violated federal law for decades. That Biden would move it to schedule III is exactly the incrementalism he’s known for, giving him a headline win in an election year without drastically changing anything. That he would take aim at recreational weed in mostly Democratic states doesn’t make any sense.

TilrayOnCocaine

"Critics point out that as a Schedule III drug, marijuana would remain regulated by the DEA. That means the roughly 15,000 cannabis dispensaries in the U.S. would have to register with the DEA like regular pharmacies and fulfill strict reporting requirements, something that they are loath to do and that the DEA is ill equipped to handle" https://thehill.com/homenews/nexstar_media_wire/4633519-marijuana-could-be-rescheduled-would-that-make-it-legal-nationwide/ They will have to buy Cannabis from Tilray opppsiieee......

Born_Bet2239

It will be for a long time. The government is about to reclassify marijuana to a schedule III drug. This changes a ton of things for the better. It’s only up from here.

ColdWarVet90

I think I'm unclear on what that actually means. Tylenol and many others are OTC. But anabolics are Sched III and still illegal. Does this change mean the Feds plan to remove laws for Fed prosecution? Which then means it's really the states deciding legality.

DEASqueezeAllComing

I would like to thank Biden for giving us a second chance to add on the dip and making our lives great again. I'm thinking of making a custom t-shirt that says DEA Schedule III where each "I" is a big fat candle and on the back of the shirt a cannabis leaf with all the cannabis tickers

phatbob198

I saw this further down, but the flood of comments can drown stuff out. DOJ **confirmed** the AP story: >"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 to Marijuana Moment on Tuesday evening. “Once published by the Federal Register, it will initiate a formal rulemaking process as prescribed by Congress in the Controlled Substances Act.” https://www.marijuanamoment.net/dea-agrees-to-reschedule-marijuana-under-federal-law-in-historic-move-following-biden-directed-health-agencys-recommendation/

phatbob198

The DOJ apparently confirmed: >"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 to Marijuana Moment on Tuesday evening. “Once published by the Federal Register, it will initiate a formal rulemaking process as prescribed by Congress in the Controlled Substances Act.”

phatbob198

Yes apparently, DOJ: >"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 to Marijuana Moment on Tuesday evening. “Once published by the Federal Register, it will initiate a formal rulemaking process as prescribed by Congress in the Controlled Substances Act.”