Industry Overview - Donald Trump's executive order to move cannabis from Schedule I to Schedule III marks a significant change for the U.S. cannabis sector, altering its federal legal status and implications for operators, investors, and public markets [1] - The rescheduling is expected to eliminate IRS Section 280E, which currently restricts cannabis businesses from deducting standard operating expenses, leading to improved financial conditions for the industry [2] Financial Implications - The removal of Section 280E could enhance profit margins and cash flow for cannabis companies, strengthening their balance sheets and enabling reinvestment and consolidation [2] - Companies with strong fundamentals are likely to benefit the most as financial metrics normalize, attracting institutional capital and expanding analyst coverage over time [3] Investment Opportunities - Investors are advised to focus on operators with positive cash flow potential post-280E rather than engaging in broad speculation [3] - Several marijuana stocks are highlighted for potential investment, including Green Thumb Industries Inc., Ayr Wellness Inc., and Jushi Holdings Inc. [8] Company Highlights - **Green Thumb Industries Inc.** reported Q3 2025 revenue of $291.4 million, a 1.6% increase year-over-year, with a GAAP net income of $23.3 million and adjusted EBITDA of $80.2 million, representing 27.5% of revenue [9] - **Ayr Wellness Inc.** is undergoing restructuring under the Companies' Creditors Arrangement Act, transitioning core assets to a new acquisition vehicle owned by senior noteholders [10][12] - **Jushi Holdings Inc.** is a vertically integrated cannabis company involved in cultivation, processing, and retail, with recent amendments to the CEO's employment agreement approved by independent directors [14]

Core Viewpoint - Tilray (TLRY) has announced its entry into the US cannabis markets following an Executive Order signed by Trump to reschedule cannabis, directing the federal government to complete the rescheduling process [1] Group 1: Company Developments - Tilray is positioning itself to capitalize on the changing regulatory landscape in the US cannabis sector [1] - The announcement indicates a strategic move by Tilray to expand its market presence in the US [1] Group 2: Industry Context - The Executive Order represents a significant shift in the federal government's approach to cannabis, potentially opening up new opportunities for companies in the cannabis industry [1] - This development may lead to increased investment and growth within the cannabis sector as regulations evolve [1]

A leveraged ETF that gives investors exposure to the American cannabis industry looks set to soar following President Donald Trump’s executive order directing the easing of federal restrictions on the psychoactive substance. The AdvisorShares MSOS Daily Leveraged ETF (NYSE:MSOX) , as the name suggests, is a leveraged fund that gives investors exposure to two times the daily total return of the AdvisorShares Pure US Cannabis ETF (NYSE:MSOS) , which is seeing a lot of activity amid this major regulatory shift ...

Core Viewpoint - The issuance of an executive order by President Donald Trump to reschedule cannabis from Schedule I to Schedule III under the U.S. Controlled Substances Act is a significant development for the cannabis industry, enhancing operational economics and enabling expanded medical research [2][3]. Company Summary - LEEF Brands, Inc. is a leading multi-state operator in the cannabis industry, focusing on extraction, manufacturing, and cultivation, with operations in California and New York [6]. - The rescheduling of cannabis will eliminate the 280E tax burden for LEEF, improving cash flow and allowing for more efficient reinvestment in growth initiatives [3]. - The company operates state-of-the-art facilities and believes that the removal of 280E will strengthen balance sheets across the sector, providing more growth capital for expansion [3]. Industry Summary - The reclassification of cannabis is expected to improve access to capital across the cannabis industry, potentially attracting institutional investors and broadening the pool of available lenders [4]. - Improved regulatory clarity may lower the overall cost of capital, creating opportunities for companies to fund growth and scale operations more efficiently [4]. - LEEF is also monitoring developments related to hemp-derived cannabinoids and potential Medicare coverage for CBD products, with a pilot program expected as early as 2026 [4].

Core Viewpoint - The issuance of an executive order by President Donald Trump to reschedule cannabis from Schedule I to Schedule III under the U.S. Controlled Substances Act is a significant development for the cannabis industry, enhancing operational economics and enabling expanded medical research [2][3]. Company Summary - LEEF Brands, Inc. is a leading multi-state operator in the cannabis industry, focusing on extraction, manufacturing, and cultivation, with operations in California and New York [6]. - The rescheduling of cannabis to Schedule III will eliminate the 280E tax burden, improving cash flow and allowing LEEF to reinvest in its workforce, facilities, and long-term growth [3]. - The company operates state-of-the-art extraction and cultivation facilities and believes that the removal of 280E will strengthen balance sheets across the sector, providing more growth capital for expansion [3][4]. Industry Summary - The rescheduling of cannabis is expected to improve access to capital across the cannabis industry, potentially attracting institutional investors and broadening the pool of available lenders [4]. - Improved regulatory clarity may lower the overall cost of capital, creating opportunities for companies to fund growth and scale operations more efficiently [4]. - LEEF is also monitoring developments related to hemp-derived cannabinoids and potential Medicare coverage for certain CBD products, with a pilot program expected as early as 2026 [4].

Core Insights - The rescheduling of cannabis from Schedule I to Schedule III under the Controlled Substances Act marks a significant policy shift, recognizing its medical use and paving the way for a more regulated national cannabis market [1][2] Group 1: Federal Rescheduling Impact - The Schedule III status will alleviate federal policy barriers, enhance access to banking, and allow companies to deduct ordinary business expenses previously restricted under 280E, thereby freeing up capital for patient care, product innovation, and market expansion [2] - This rescheduling follows a recent federal clarification regarding hemp-derived intoxicants, which is expected to reduce unlicensed competition and alleviate pricing pressures, particularly in key states like Florida and Texas [3] Group 2: Company Commitment and Operations - FLUENT Corp. is dedicated to operational excellence in cultivation, production, distribution, and retail, producing a diverse range of cannabis products under various brands [4] - The company operates in multiple states, including Florida, New York, Pennsylvania, and Texas, employing 700 staff across 8 cultivation and manufacturing facilities and 37 retail locations [4]

Core 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].

Core 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 significant step for the cannabis industry and its growth strategy [1][2]. Group 1: Impact of Rescheduling on the Cannabis Industry - Rescheduling cannabis is viewed as overdue, with 39 states having already legalized it in some form, reflecting public sentiment and enabling necessary medical research [2]. - The change is expected to weaken the illicit cannabis market by enhancing the financial viability of the legal industry, which employs over 425,000 people and contributes $100 billion to the economy [2]. - Rescheduling will not legalize cannabis federally but will alleviate financial constraints on cannabis companies, facilitating medical research on its use for conditions like PTSD and cancer [2][3]. Group 2: Financial Implications for Cannabis Companies - The current 280E tax penalty has severely impacted the profitability of legal cannabis companies, often leading to their closure; rescheduling will eliminate this penalty, aligning their tax rates with other American businesses [3]. - This change is anticipated to allow cannabis companies to invest more in capital and growth opportunities, which could positively affect ScottsMiracle-Gro's subsidiary, Hawthorne Gardening Company [3]. Group 3: Strategic Moves by Scotts Miracle-Gro - The company plans to strategically transition Hawthorne into a cannabis-focused entity, aiming to combine it with a cannabis company in early fiscal 2026, enhancing growth opportunities [4]. - The reclassification of cannabis is expected to make Hawthorne a more appealing partner for cannabis-dedicated companies [4]. Group 4: Classification of Cannabis - Cannabis, currently classified as a Schedule I drug alongside heroin, will move to Schedule III, aligning it with drugs that have accepted medical uses and lower potential for physical dependence [5]. Group 5: Company Overview - Scotts Miracle-Gro is the leading marketer of branded consumer lawn and garden products in North America, with approximately $3.4 billion in sales and well-known brands like Scotts®, Miracle-Gro®, Ortho®, and Tomcat® [6].

Core Viewpoint - The Trump Administration's decision to reschedule cannabis as a Schedule III substance under the Controlled Substances Act is a significant federal reform that acknowledges the medicinal properties of cannabis and opens new opportunities for research, medical advancement, and investment [1][2]. Group 1: Impact of Rescheduling - Rescheduling cannabis to Schedule III will destigmatize the plant, allowing for federally funded clinical research, supporting veterans, and expanding patient access [2][3]. - The policy change eliminates onerous tax penalties and creates opportunities for increased investment in state programs, which can generate jobs and tax revenue for local communities [2][3]. Group 2: Public Support and Industry Commitment - The reclassification aligns with nearly 90% of U.S. adults who support legalization for medical or recreational use, reflecting widespread public support for cannabis reform [3]. - The company remains committed to the destigmatization and decriminalization of cannabis through community-based initiatives [3]. Group 3: Company Overview - Curaleaf Holdings, Inc. is a leading international provider of consumer cannabis products, known for quality and reliability, with a strong presence across the supply chain [4]. - The company operates under various brands, including Curaleaf, Select, and Grassroots, and is listed on the Toronto Stock Exchange and OTCQX market [4].

CHICAGO--(BUSINESS WIRE)--Cresco Labs Inc. (CSE: CL) (OTCQX: CRLBF) (FSE: 6CQ) ("Cresco Labs†or the "Company†), today issued a statement on behalf of Cresco Labs CEO Charlie Bachtell following President Trump's action to reschedule cannabis from a Schedule I to Schedule III substance under the Controlled Substances Act. "Today marks the most consequential moment in the history of U.S. cannabis. The decision to move cannabis from Schedule I to Schedule III will be a cultural turning point, ackn. ...