Tilray Brands Soars 23.91% on U.S. Cannabis Rescheduling Hopes

On August 12, 2025, Tilray Brands experienced a significant surge, rising by 23.91% in pre-market trading, driven by optimism surrounding potential regulatory changes in the cannabis industry.

Tilray Brands has been positioned as an attractive investment opportunity within the cannabis sector, despite ongoing operational challenges. The company's stock has been buoyed by the potential for regulatory changes that could significantly impact the industry.

One of the key drivers behind the surge in Tilray's stock is the possibility of the U.S. government reclassifying cannabis to a less restrictive schedule. This reclassification could reduce tax burdens under IRS Section 280E and ease federal regulations, making it easier for cannabis companies to operate and attract investment.

The proposed change would move marijuana to Schedule III, which is a category for drugs with accepted medical uses and lower abuse potential. This shift could unlock banking access for cannabis producers, attract institutional investors, and reduce the tax burden on the industry.

Trump's remarks at a fundraiser in New Jersey sparked renewed optimism across the sector, with executives urging the president to prioritize rescheduling and research. This regulatory optimism has led to sharp gains in cannabis stocks and ETFs, with Tilray being one of the notable beneficiaries.

However, it is important to note that the industry still faces persistent challenges, including limited banking access, punitive IRS rules on deductions, and political uncertainty. The sector remains volatile, with gains often reversing quickly if regulatory hopes fade or political priorities shift.