Tilray Shares Surge on Regulatory Speculation

Speculative energy has returned to the cannabis sector with a vengeance. Tilray Brands, Inc. saw its equity price skyrocket on Friday, accompanied by a massive surge in trading activity. The catalyst appears to be concrete reports regarding a potential historic policy shift from the White House, which could reshape the market landscape as early as Monday.

Market participants reacted with extraordinary force to the emerging news. Trading volume exploded to more than 80 million shares, a staggering increase compared to the 30-day average of approximately 5.1 million. The stock closed near $12.15, marking a single-day advance of roughly 44 percent.

Investors should consider the recent corporate action providing context for the current share price. In early December 2025, the company executed a 1-for-10 reverse stock split. This capital measure explains the optically higher price level above the $12 mark. Prior to Friday's developments, the market had reacted negatively to this consolidation. The speculation surrounding a potential federal reclassification has now fundamentally reversed that technical downtrend.

Should investors sell immediately? Or is it worth buying Tilray?

The Core Catalyst: A Potential Federal Reclassification

Fueling this dramatic move was a report from the Washington Post, later corroborated by other major financial news outlets. According to these reports, the current administration is planning to reclassify marijuana from a Schedule I controlled substance—a category that includes heroin—to Schedule III, which encompasses drugs with a moderate to low potential for physical and psychological dependence, such as certain codeine-containing medications. Sources suggest an executive order could be signed as soon as Monday.

While such a move would not equate to federal legalization overnight, it would have profound operational implications for companies like Tilray:
* Tax Relief: The removal of the restrictive tax code Section 280E would drastically reduce the company's tax burden, significantly boosting net profitability.
* Financial Services Access: The door would likely open for institutional financing and standard banking services, which have been largely inaccessible to the cannabis industry under the current scheduling.

A Critical Test Ahead

Monday now presents a crucial test for the current valuation. Should the anticipated executive order be formally signed or officially confirmed, the positive momentum could very well continue. However, if confirmation fails to materialize or the proposed measures prove less comprehensive than current speculation suggests, the vertical price movement witnessed on Friday could lead to a sharp correction.