Implications of U.S. Marijuana Rescheduling on Canadian Cannabis Companies
A historic day
Marijuana probably never should have been classified as a Schedule I drug to begin with. That's a designation shared with extremely dangerous drugs that have no known medical benefits and significant abuse potential, like heroin.
The rescheduling of the drug doesn't legalize marijuana at the federal level, and the DEA's recommendation by itself doesn't reclassify pot. The White House Office of Management and Budget (OMB) has to approve the recommendation, and the rule must go to public comment before being finalized. However, the historic recommendation following a year-plus study by the HHS tilts the odds heavily in favor that marijuana will be rescheduled.
Why rescheduling cannabis is beneficial
- Addresses tax issues for cannabis companies
- Allows U.S. companies to list on major U.S. stock exchanges
- Eliminates tax code burden on profits
However, if pot is rescheduled, U.S. cannabis companies will now be taxed like any other company, which is a huge benefit to their bottom lines.