Cronos Group Inc (NASDAQ:CRON) shares are trading higher by 21% to $2.06 over the trailing five sessions, driven by the strong performance of the cannabis sector. Cannabis stocks have risen over the past week on news that the Department of Health and Human Services (HHS) proposed reclassifying marijuana to a lower-risk drug category.
See Also: Weed Stocks Skyrocket, Could There Be More Upside? Analyst Draws Scenarios
According to a letter dated August 29 seen by Bloomberg News, a high-ranking official from the Department of Health and Human Services has written to DEA Administrator Anne Milgram, urging the reclassification of marijuana from Schedule I to Schedule III under the Controlled Substances Act.
This shift reflects a significant change, as Schedule I substances include highly abused drugs like heroin.
The recommendation is informed by an FDA evaluation of marijuana’s classification. The Controlled Substances Act categorizes substances based on medical usage, abuse potential and safety.
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According to data from Benzinga Pro, Cronos Group has a 52-week high of $3.62 and a 52-week low of $1.64.
