Scotts Miracle-Gro(US:SMG) Globenewswire·2025-12-18 19:46Core Viewpoint - The Scotts Miracle-Gro Company supports President Trump's executive order to reschedule cannabis from a Schedule I to Schedule III drug, which is seen as a necessary step for research and the legal cannabis industry [1][2]. Group 1: Impact of Rescheduling - Rescheduling cannabis is expected to strengthen the financial viability of the legal cannabis industry, which employs over 425,000 people and contributes $100 billion to the economy [2]. - The change will help combat the illicit cannabis market by making legal operations more competitive [2]. - Rescheduling will remove the 280E tax penalty that currently imposes tax rates of 70% or higher on cannabis companies, aligning them with the general corporate tax rate of 21% [2][3]. Group 2: Implications for Scotts Miracle-Gro - The rescheduling is anticipated to enhance profitability for legal cannabis companies, allowing them to invest more in capital and growth opportunities, which could benefit ScottsMiracle-Gro's Hawthorne Gardening Company subsidiary [3]. - Hawthorne has experienced a decline in capital spending from cannabis companies due to financial struggles, and increased investments could positively impact its business [3]. - The company plans to strategically transition Hawthorne into a cannabis-focused entity, expecting to combine it with a cannabis company in early fiscal 2026, which will create greater growth opportunities [4]. Group 3: Cannabis Classification - Cannabis, currently classified as a Schedule I drug alongside heroin, will be reclassified to Schedule III, placing it with drugs that have accepted medical uses and lower potential for physical dependence [5].