Canopy Growth’s stock falls back from recent gains

Canopy Growth Corp.’s stock
CGC,
-13.91%
fell about 14% on Tuesday after it more than doubled in the two previous days. The stock had briefly moved higher earlier in the day before dropping down into the red, as most cannabis stock cooled off after recent gains. The AdvisorShares Pure US Cannabis ETF
MSOS,
-5.86%
fell 5%, Curaleaf Holdings Inc.
CURLF,
-3.44%
dropped 1.3%, Trulieve Cannabis Corp.
TCNNF,
-4.17%
fell 3.5% and Green Thumb Industries Inc.
GTBIF,
-6.73%
fell 5.9%. The AXS Cannabis ETF
THCX,
-2.81%
dropped 2.8%, and Tilray Brands Inc.
TLRY,
-8.46%
dropped 10%. Optimism around a potential re-scheduling of cannabis rose last week after the U.S. Department of Health and Human Services recommended a Schedule III classification for cannabis under federal law. However, on Tuesday, 14 Republican members of Congress wrote a letter to the Drug Enforcement Administration (DEA) recommending against re-scheduling and keeping marijuana’s Schedule I status, which is the most restrictive category under the U.S. Controlled Substances Act (CSA), as initially reported by Marijuana Moment.