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IM Cannabis (NASDAQ:IMCC) stock is surging on Wednesday following reports of President Joe Biden’s Administration planning to reclassify marijuana.
Insider sources reveal that the Biden Administration aims to downgrade marijuana from a Schedule I drug to a less restrictive Schedule III drug, placing it in the same category as Tylenol with codeine and other medications.
This reclassification could lead to reduced restrictions on cannabis, enabling more medical research. Moreover, cannabis businesses stand to benefit from being able to deduct normal expenses on taxes, as the rescheduling would eliminate IRS code Section 280E.
The latest news on drug classification is the result of ongoing efforts by Biden’s Administration dating back to 2022. Agreements from regulatory bodies now hinge on the Drug Enforcement Administration’s approval of the Department of Health and Human Services’ rescheduling proposal, as reported by CNBC.
Implications for IMCC Stock Today
IMCC shares are witnessing heavy trading on Wednesday alongside the marijuana reclassification discussions. Over 7.1 million shares have changed hands so far, well above the daily average of 780,000 shares. As of Wednesday morning, IMCC stock has surged by 48.8%.
For more stock market updates, investors can explore the latest news below!
Recent Developments in Wednesday’s Stock Market
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As of the publication date, William White had no direct or indirect positions in the securities mentioned. The opinions expressed are solely those of the author and are subject to the InvestorPlace.com Publishing Guidelines.
