** Shares of cannabis firms fall after U.S. Drug Enforcement Administration's $(DEA)$ preliminary hearing on marijuana rescheduling proposal begins

** Tilray Brands TLRY.O falls 1.1% and U.S.-listed shares of Cronos Group CRON.O falls 1.9%

** Toronto-listed shares of Canopy Growth WEED.TO falls 1.3% and Trulieve Cannabis TRUL.CD falls 0.5%

** Last week, DEA said the hearing "will serve as a procedural day to address legal and logistical issues and discuss future dates for the evidentiary hearing on the merits"; the agency said no witness testimony will be heard

** Despite marijuana being legal in dozens of U.S. states, federal law categorizes it as a schedule I drug and prohibits most conventional U.S. banks from doing business with cannabis firms

(Reporting by Pooja Menon in Bengaluru)

((Pooja.Menon@thomsonreuters.com;))