Canopy Growth (NASDAQ: CGC) shares surge 10.24% on December 17 2025 on potential Schedule III reclassification and MTL acquisition

Shares of Canopy Growth Corporation (NASDAQ: CGC) surged 10.24% in pre-market trading on December 17, 2025, driven by strategic moves and industry developments.

The rally coincided with reports that the Trump administration is considering reclassifying marijuana as a Schedule III drug, a shift that could ease regulatory burdens for cannabis firms. This potential policy change has sparked optimism in the sector, with Canopy’s stock reflecting heightened investor confidence in long-term growth prospects.

Strategic acquisitions and product innovation further fueled the upward momentum. Canopy announced its acquisition of MTL Cannabis, a move aimed at expanding its market presence and diversifying operations. The company also unveiled plans to launch new vape products under the Claybourne Gassers brand, targeting the high-demand cannabis vaporizer market.

Analysts noted that while the company continues to operate at a loss—with recent quarterly revenue of $269 million and a net loss of $1.64 million—its strong liquidity position and aggressive expansion strategies position it to capitalize on industry tailwinds. The acquisition of MTL Cannabis, in particular, has been cited as a catalyst for improved market positioning and operational scalability.

Despite short-term financial challenges, the convergence of regulatory optimism, strategic acquisitions, and product diversification underscores Canopy’s efforts to solidify its role in a rapidly evolving cannabis landscape. However, investors are advised to remain cautious, as the sector remains subject to regulatory and market volatility.