Tilray Inc. (NASDAQ: TLRY) surged 12.73% intraday, leading a broader rally in cannabis stocks following reports that U.S. President Donald Trump is poised to sign an executive order rescheduling marijuana from Schedule I to Schedule III under the Controlled Substances Act.

The move would lift the crippling IRS Section 280E tax burden, allowing cannabis companies to deduct standard business expenses and potentially achieve profitability for the first time. Investors are betting on the transformative impact of this regulatory change, which could also ease research restrictions and improve access to capital for the industry.

The cannabis sector saw widespread gains, with other major players like Canopy Growth and Aurora Cannabis also posting significant increases. Market sentiment remains bullish as traders await official confirmation of the executive order, which could be signed as early as this week.