Canadian cannabis stocks soared Tuesday afternoon after The Associated Press reported the U.S. Drug Enforcement Agency will move to reclassify marijuana as a less dangerous drug.

Canopy Growth Corp. closed up 80 per cent at $20.45, while Aurora Cannabis Inc. and Tilray Brands Inc. closed up 46 per cent and 40 per cent, respectively.

The Associated Press, citing five sources familiar with the matter, reported the DEA鈥檚 proposal would recognize the medical uses of cannabis and acknowledge it has less potential for abuse than other, more dangerous drugs.

However, it would not legalize marijuana for recreational use.

Currently, marijuana is listed as a Schedule I drug in the U.S., alongside heroin and LSD, but would be reclassified as a Schedule III drug, alongside ketamine and some anabolic steroids.

The reclassification of the drug in the U.S. could lessen risks for cannabis companies that operate south of the border and potentially improve investor appetite for cannabis stocks.

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