Industry Overview - The U.S. cannabis industry is evolving with expanding legalization momentum, leading to growth in both medical and adult-use markets. Analysts predict long-term demand will continue to rise as more states approve regulated programs [1][3] - Ancillary stocks, which do not directly handle cannabis, are gaining investor interest due to regulatory hurdles and difficult banking conditions faced by plant-touching companies. These ancillary companies benefit from industry growth while reducing risk [1][2] Ancillary Stocks Characteristics - Ancillary stocks provide services or capital to licensed operators, including owning real estate for cultivation and retail operations, and offering financing that banks often avoid. This model allows investors to gain exposure to the cannabis sector without directly handling the plant [2] - Many ancillary companies operate as Real Estate Investment Trusts (REITs) or structured lenders, providing reliable income through dividends, making them attractive for long-term portfolios [2] Financial Stability and Future Outlook - As the cannabis market matures, financial strength and stability are increasingly important. Investors are looking for companies with steady revenue and disciplined management, especially those positioned to benefit from potential federal reforms [3] - The year 2026 is anticipated to be significant for ancillary growth, particularly if there are changes in federal regulations regarding cannabis [3] Leading Ancillary Stocks to Watch - **Innovative Industrial Properties (IIPR)**: Focuses on purchasing cultivation and processing facilities and leasing them back to licensed operators. It benefits from industry growth without handling cannabis directly and has shown steady performance with strong rental income [5][8] - **NewLake Capital Partners (NLCP)**: Operates as a REIT with a concentrated portfolio of dispensaries and cultivation facilities. It emphasizes careful tenant selection and has maintained conservative debt levels, appealing to cautious investors [9][11] - **Chicago Atlantic Real Estate Finance (REFI)**: Provides secured loans to licensed operators, focusing on senior secured credit. This model allows it to command attractive interest rates in a market underserved by traditional banks [12][14]

Key Points Investors felt the cannabis executive order didn't go far enough. Tilray's CEO backed President Trump's decision, but called it an "incremental step." 10 stocks we like better than Tilray Brands › It was an exciting week in the cannabis sector. Rumors that President Trump was planning to reclassify marijuana from Schedule I to Schedule III under the Controlled Substances Act (CSA) had pot stock shares soaring. The stock of global cannabis company Tilray Brands (NASDAQ: TLRY) was up 28% ...

Vancouver, British Columbia--(Newsfile Corp. - December 19, 2025) - Herbal Dispatch Inc. (CSE: HERB) (OTC Pink: LUFFF) (FSE: HA9) ("Herbal Dispatch" or the "Company") a leading Canadian cannabis e-commerce platform specializing in small-batch craft cannabis, today shared insights from CEO Philip Campbell regarding President Trump's landmark decision to shift cannabis from Schedule I to Schedule III under the U.S. Controlled Substances Act."This development stands as a transformative breakthrough not just f ...

President Trump just gave cannabis investors something they've been waiting for.Shares of Tilray Brands (TLRY +28.04%) soared today, finishing up 27.5%. The jump came as the S&P 500 lost 0.3% and the Nasdaq Composite gained 0.2%.The cannabis company's stock is rising after President Donald Trump confirmed that his administration is looking into reclassifying marijuana -- a move that could be a game changer for the cannabis industry.NASDAQ : TLRYTilray BrandsToday's Change( 28.04 %) $ 3.06Current Price$ 13.9 ...

Cannabis stocks like Tillray, Aurora, and the Advisor Shares ETF are all soaring on these reports that the president will move to reclassify marijuana as a less dangerous drug. Our Brandon Gomez has been covering the story for what feels like forever and has more on the timing of this news. Hey, Brandon. >> Hey, Carl.Yeah, that's right. I feel like we've been here before, right. But with the president wanting to reschedule uh the drug to a new classification, now it is currently scheduled as schedule one.No ...

Core Viewpoint - Shares of cannabis companies experienced a significant increase following reports that U.S. President Donald Trump is expected to advocate for substantial reductions in federal restrictions on marijuana [1] Group 1 - The Washington Post's report has led to a positive market reaction for cannabis companies, indicating investor optimism regarding potential regulatory changes [1]

Core Insights - The U.S. cannabis market is rapidly evolving with new states expanding access and increasing consumer participation in the legal marketplace [1][2] - Major multi-state operators are under scrutiny as competitive pressures rise, with a focus on companies that demonstrate strong retail presence and financial performance [1][2] - The push for federal reform is gaining momentum, prompting traders to seek adaptable companies with efficient operations and strong brand recognition [2] Company Summaries Green Thumb Industries (GTBIF) - Green Thumb Industries is a leading U.S. cannabis operator with over 100 dispensaries, primarily in Illinois and Pennsylvania, and is known for its vertically integrated structure [3][4] - The company has reported steady revenue growth, positive earnings, and improved gross margins due to better production efficiencies [4] - Green Thumb's disciplined expense management and focus on long-term profitability have positioned it well amidst industry challenges [4][6] Glass House Brands (GLASF) - Glass House Brands operates large greenhouse cultivation sites in California and has a growing retail presence, producing high-quality flower at scale [6][8] - The company has seen steady revenue growth driven by higher wholesale demand and expanding retail sales, while also improving margins through reduced costs [8] - Glass House's efficiency in a challenging market makes it an attractive long-term investment opportunity [8] Cansortium Inc. (CNTMF) - Cansortium Inc. focuses on the Florida market, operating numerous medical dispensaries and maintaining a vertical integration strategy for quality control [9][11] - The company has experienced year-over-year revenue growth, improved margins, and better cash flow, supporting its expansion efforts [11] - Cansortium's disciplined growth strategy and focus on profitable markets position it as an emerging opportunity in the cannabis sector [11]

Summary of Auxly Cannabis Group Conference Call Company Overview - **Company Name**: Auxly Cannabis Group - **Ticker Symbols**: CBWTF (OTC), XLY (TSX) - **Headquarters**: Toronto, Ontario - **Industry**: Cannabis - **Market Position**: Third largest producer in Canada with approximately 6% market share [4][28] Key Points and Arguments Company Performance - **Revenue Growth**: Auxly has achieved a compound annual growth rate (CAGR) of approximately 60% since starting commercial sales in 2020 [5] - **Recent Financials**: - Generated CAD 146 million in net operating revenue over the last 12 months - Adjusted EBITDA of CAD 42 million - Free cash flow of approximately CAD 35 million before working capital adjustments [6] - **Q3 2025 Results**: - Net revenues reached CAD 39.9 million, a 20% year-over-year increase - Gross margins expanded to 56%, a 9 percentage point increase from Q3 2024 - Adjusted EBITDA of CAD 12.3 million, a 48% year-over-year increase [18] Market Dynamics - **Canadian Cannabis Market**: - Continues to grow at a rate of 5%-7% annually - Market stabilization due to the exit of companies and a shift towards asset-light models [6][7] - **Pricing Power**: Improved pricing dynamics for producers like Auxly due to strong demand and reduced competition [7] Strategic Partnerships - **Imperial Brands**: Auxly has a strategic partnership with Imperial Brands, which owns approximately 20% of Auxly's stock. This partnership is expected to provide significant advantages as new jurisdictions legalize cannabis [5][9] Product Focus and Innovation - **Product Portfolio**: Auxly specializes in dried flower, pre-rolls, and vapes, which collectively account for nearly 90% of cannabis sales in Canada [4] - **Flagship Brand**: Back 40 is the number one cannabis brand in Canada by dollar sales, with a 90% growth rate in dried flower over the last 12 months [11] - **Vape Innovations**: Auxly Charlottetown is recognized for its vapor innovation, with the Back 40 brand holding a 22% share in the all-in-one vape segment [16] Operational Excellence - **Facilities**: - Auxly Leamington is a 1.1 million sq ft cultivation facility producing about 100,000 kilograms of dried flower annually [10] - The facility is designed for high-quality production at low costs, contributing to Auxly's competitive edge [11] - **Cash Flow Management**: - Generated CAD 11 million in cash flow from operations in Q3, an 82% year-over-year increase - Strong cash flow conversion rate of 83% over the last 12 months [20] Future Outlook - **CapEx Plans**: - Anticipated increase in capital expenditures in 2026 to enhance throughput and quality at Auxly Leamington [23] - **International Expansion**: - Short-term focus on B2B opportunities and bulk shipments, with long-term plans for branded product expansion in international markets [27] Management Philosophy - **Focus on Profitability**: The management team emphasizes profitability and cash flow generation, with a commitment to prudent capital allocation [25][26] Additional Important Information - **Market Share Fluctuations**: Auxly's market share can vary weekly but is generally around 6% [28] - **Debt Management**: The company has improved its balance sheet, ending Q3 with CAD 30 million in cash and a healthy debt-to-EBITDA ratio of 1.3 times [20] - **Product Launches**: Recent product launches, such as Southpoint, have shown strong initial market performance, with all SKUs ranking in the top 10 of their category shortly after launch [33] This summary encapsulates the key insights and strategic directions of Auxly Cannabis Group as discussed in the conference call.

Core Viewpoint - Tilray Brands is a leading company in the cannabis industry but has faced significant challenges over the past five years, leading to poor investment performance. Despite a recent stock price increase of 90% over six months, the initiation of a reverse stock split raises concerns about its future prospects [1][3]. Company Performance - Tilray's stock price rose due to catalysts such as potential cannabis legalization in the U.S. and an unexpected profit reported in the first quarter of fiscal year 2026 [5][6]. - The company implemented a 1-for-10 reverse stock split to avoid delisting from the Nasdaq, indicating underlying performance issues [3]. Market Conditions - The cannabis market has been plagued by regulatory challenges, and the recent momentum towards legalization remains speculative. Actual legal changes have included restrictions that negatively impact Tilray [7][8]. - Organic revenue growth for Tilray has been inconsistent, with net losses being common, reflecting ongoing doubts about the cannabis industry's viability in North America and beyond [8]. Future Outlook - The outlook for Tilray suggests it may continue to be a poor investment choice over the next five years, with recommendations to avoid the stock [9].

Core Insights - Shares of Tilray Brands (TLRY) have been declining steadily, attributed to recent U.S. legislation tightening the legal definition of hemp and a reverse stock split that has negatively impacted investor sentiment [1][2]. Regulatory Changes - U.S. lawmakers passed a provision that redefines hemp, allowing only products with no more than 0.4 milligrams of THC per container, which significantly affects the hemp-derived THC beverage and snack industry [3][4]. - This new rule, expected to take effect in nearly a year, will reclassify many existing low-dose THC products as marijuana, making them illegal under federal law [4]. - The regulatory change introduces uncertainty into a previously fast-growing category for Tilray, complicating future expansion into hemp-derived THC beverages [5]. Company Performance - Despite the challenges, Tilray's cannabis revenues rose 5% year over year to $64.5 million, supported by strong demand in the Canadian adult-use market and expanding international sales [9][10]. - Canadian adult-use revenues increased by 12%, affirming Tilray's position as the largest legal cannabis producer in Canada by revenues [10]. - International sales grew by 10%, particularly in Germany and Italy, aided by Tilray's CC Pharma distribution platform [10][11]. Product Development - Tilray has expanded its European presence by launching five new cannabis flower products in Germany and introduced its first medical cannabis edible in Australia, demonstrating a commitment to innovation [11]. Stock Performance - Tilray's shares have dropped 42% year to date, contrasting with the industry's 4% growth [12]. - Estimates for Tilray's loss per share for fiscal years 2026 and 2027 have improved over the last 60 days, indicating some positive adjustments in expectations [14]. Investment Outlook - While the recent sell-off reflects genuine concerns, hemp-derived THC products account for a small portion of Tilray's total revenues, limiting the financial impact of the regulatory shift [15]. - The company's core cannabis operations continue to show progress, supported by rising international medical sales and product launches [15]. - Tilray's diversification into craft beverages and wellness brands adds stability, and its improving cost structure enhances competitive positioning [15]. - The stock remains attractive in the near term, especially as investors await clarity on U.S. federal cannabis reforms [16].