Shares of pot companies climbed in premarket trading on Monday after U.S. President Donald Trump advocated the potential benefits from the use of cannabidiol in senior healthcare in a social media post.

Trump had said last month his administration was looking to reclassify marijuana, which could also result in potentially easing criminal penalties around its use.

Hemp-derived cannabidiol (CBD) could “revolutionize senior healthcare” by helping reduce disease progression and was shown as an alternative to prescription drugs, he said in a post on Truth Social on Sunday.

U.S.-listed shares of Canopy Growth (WEED-T) and Tilray Brands (TLRY-T) both jumped nearly 20 per cent before the bell, while Cronos Group (CRON-T) added 9.5 per cent and Aurora Cannabis (ACB-T) gained 13.7 per cent, respectively.

The AdvisorShares Pure U.S. Cannabis exchange-traded fund surged 25.2 per cent and is on track for its biggest quarterly gain on record of around 70 per cent.

“MSOS, the largest U.S. marijuana-focused ETF, is indicated up 20 per cent at the open and benefiting from President Trump’s surprise Sunday support for the potential benefits of CBD, with any support going a long way for this beleaguered listed sector,” said Ben Laidler, head of equity strategy at Bradesco BBI.

Regulations around the commercial use of hemp and CBD were significantly eased through the enactment of the Agriculture Improvement Act during Trump’s first term.

However, marijuana remains listed as a Schedule I substance, under the Controlled Substances Act, meaning it has a high potential for abuse and no current accepted medical use.

Former Joe Biden had directed the Department of Health and Human Services to review marijuana’s status, leading the agency to recommend moving it to Schedule III, a category for drugs with moderate to low potential for dependence.

Trump “already hinted that they were planning to reclassify it. This doesn’t mean it’s legalizing the drug, but it does reduce some of the burden on the companies,” said Daniela Hathorn, senior market analyst at Capital.com.

“I do think there is further room for these stocks to move higher if it’s confirmed that the reclassification is happening.”

Weed stocks have reflected the ebb and flow of the prolonged process taken by each U.S. administration toward wider legalization of marijuana and are often volatile. Some stocks, such as Canopy Growth have lost half their value this year, while Cronos and SNDL have both gained more than 30 per cent.

Reclassification would remove the tax burden under Section 280E, which denies standard business deductions to cannabis companies. If the tax barrier is resolved, it could pave the way for more cannabis companies to list on U.S. stock exchanges and attract interest from institutional investors.

Reclassifying marijuana also represents a first step toward narrowing the chasm between state and federal cannabis laws. The drug is legal in some form in nearly 40 states.

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 Shares of pot companies climbed in premarket trading on Monday after U.S. President Donald Trump advocated the potential benefits from the use of cannabidiol in senior healthcare in a social media post.

Trump had said last month his administration was looking to reclassify marijuana, which could also result in potentially easing criminal penalties around its use.

Hemp-derived cannabidiol (CBD) could “revolutionize senior healthcare” by helping reduce disease progression and was shown as an alternative to prescription drugs, he said in a post on Truth Social on Sunday.

U.S.-listed shares of Canopy Growth (WEED-T) and Tilray Brands (TLRY-T) both jumped nearly 20 per cent before the bell, while Cronos Group (CRON-T) added 9.5 per cent and Aurora Cannabis (ACB-T) gained 13.7 per cent, respectively.

The AdvisorShares Pure U.S. Cannabis exchange-traded fund surged 25.2 per cent and is on track for its biggest quarterly gain on record of around 70 per cent.

“MSOS, the largest U.S. marijuana-focused ETF, is indicated up 20 per cent at the open and benefiting from President Trump’s surprise Sunday support for the potential benefits of CBD, with any support going a long way for this beleaguered listed sector,” said Ben Laidler, head of equity strategy at Bradesco BBI.

Regulations around the commercial use of hemp and CBD were significantly eased through the enactment of the Agriculture Improvement Act during Trump’s first term.

However, marijuana remains listed as a Schedule I substance, under the Controlled Substances Act, meaning it has a high potential for abuse and no current accepted medical use.

Former Joe Biden had directed the Department of Health and Human Services to review marijuana’s status, leading the agency to recommend moving it to Schedule III, a category for drugs with moderate to low potential for dependence.

Trump “already hinted that they were planning to reclassify it. This doesn’t mean it’s legalizing the drug, but it does reduce some of the burden on the companies,” said Daniela Hathorn, senior market analyst at Capital.com.

“I do think there is further room for these stocks to move higher if it’s confirmed that the reclassification is happening.”

Weed stocks have reflected the ebb and flow of the prolonged process taken by each U.S. administration toward wider legalization of marijuana and are often volatile. Some stocks, such as Canopy Growth have lost half their value this year, while Cronos and SNDL have both gained more than 30 per cent.

Reclassification would remove the tax burden under Section 280E, which denies standard business deductions to cannabis companies. If the tax barrier is resolved, it could pave the way for more cannabis companies to list on U.S. stock exchanges and attract interest from institutional investors.

Reclassifying marijuana also represents a first step toward narrowing the chasm between state and federal cannabis laws. The drug is legal in some form in nearly 40 states.

Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.