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We Could See Legal Cannabis in the U.S. by September

Canada was just the beginning…

While the recent news coming out of Canada is critical, this year’s biggest announcement for the marijuana industry will come from the United States. And it’ll happen in the next few months.

You might find this hard to believe. After all, Canada just legalized marijuana outright. Come October, anyone over the age of 19 will be able to legally buy and consume marijuana in most parts of Canada. And that includes tourists.

That’s obviously great news for the marijuana industry. But an announcement I’ll tell you about today should have an even bigger impact on the market.

That’s because it could be the first step towards the United States legalizing marijuana. And with the U.S. having about nine times as many people as Canada, the potential market is massive.

In short, this would be a game changer for the U.S. marijuana industry. And yet, most investors have no clue it’s about to happen.

I’ll tell you everything you need to know about this upcoming announcement in a minute. I’ll even show you which marijuana companies are best-positioned to profit.

But first, let me tell you about another historic decision that was made this week…

On Monday, the Federal Drug Administration (FDA) approved its first cannabis-based drug…

The drug is called Epidiolex. It’s being developed by GW Pharmaceuticals, a U.K.-based pharmaceutical giant.

Epidiolex treats forms of childhood-onset epilepsy, Dravet syndrome, Lennox-Gastaut syndrome (LGS), and other treatment-resistant forms of epilepsy.

And the FDA approved Epidiolex because… well… it works.

One recent study found that Epidiolex is three times more effective than a placebo in reducing seizures caused by Dravet syndrome. Another study found it to be twice as effective at reducing seizures caused by Lennox-Gastaut syndrome.

So the FDA gave it the green light.

This is huge news for GW Pharmaceuticals…

And yet, its stock didn’t jump on the news… It actually dropped 4% on Monday.

The announcement also didn’t trigger a major rally in pot stocks like I >predicted back in May. But that’s not because of anything the FDA did.

It’s because U.S. stocks took a hit on Monday. The S&P 500 ended the day down 1.4%, and the Nasdaq Composite fell 2.1%.

Still, I’m not worried about this minor hiccup. In fact, I think it’s only a matter of time before this decision triggers a massive run in marijuana stocks.

To understand why, you should know something about Epidiolex…

It doesn’t contain THC, the psychoactive compound in cannabis. Instead, it contains cannabidiol (CBD).

CBD is another compound found in cannabis. It doesn’t get people high like THC does… but it does offer many health benefits.

People can use it to treat many things—anxiety, insomnia, chronic pain… you name it.

That said, CBD is still a Schedule I drug in the U.S. That means the government believes CBD has “a high potential for abuse” and “no currently accepted medical use.”

But, at this point, the government really can’t say that CBD has no medical potential. After all, the FDA just approved Epidiolex.

This tells us that the feds no longer view cannabis as a street drug. Instead, they see it as a plant with tremendous medical benefits.

CBD’s days as a Schedule I drug are numbered…

The feds themselves admit this.

Here’s what Barbara Carreno, a public affairs officer for the Drug Enforcement Administration (DEA), told Business Insider after the FDA’s decision.

We don’t have a choice […] It absolutely has to become Schedule II or III.

If this happens, CBD will have the same classification as the popular ADHD medication Adderall.

And get this… The DEA says it expects to reschedule CBD in the next 90 days.

This means CBD could shed its Schedule I status before the end of September.

That would allow GW Pharmaceuticals, other CBD drugmakers, and even companies that sell CBD oils to sell their products in all 50 states.

That alone is a good reason to be bullish on the marijuana industry. But there’s more at stake.

This decision could open the door for outright marijuana legalization…

Think about it.

Canada just legalized marijuana outright. And that decision puts Canadian marijuana companies at the forefront of the global marijuana boom… and miles ahead of U.S. marijuana companies.

I wouldn’t expect Donald Trump to stand for that. After all, he’s been putting American businesses first since he stepped into the Oval Office.

So, it wouldn’t surprise me if Trump made legalizing marijuana outright his top priority after the FDA reschedules CBD.

Most investors don’t realize we’re this close to outright marijuana legalization…

If they did, U.S. marijuana stocks wouldn’t be trading 10% off their all-time highs. They’d be soaring.

Of course, it’s only a matter of time before other investors connect the dots. When they do, U.S. marijuana stocks should blow past their previous highs. That’s obviously something you want to get in front of.

So, consider speculating on U.S. marijuana stocks if you haven’t yet. Specifically, I encourage you to look at companies that sell CBD products. They stand to benefit the most from a CBD rescheduling by the DEA.

Just remember that the legal marijuana market is still in its infancy. So, treat marijuana stocks like a speculation.

Don’t bet money you can’t afford to lose. Keep your position sizes small. And you may even want to trim your positions once you’re sitting on big profits.

Regards,

Justin Spittler

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