Financial Data and Key Metrics Changes - For Q2 2025, the company generated distributable earnings of $0.15 per basic weighted average share of common stock and declared a second quarter dividend of $0.15 per share [5][6][18] - The company reported a GAAP net loss of $13.2 million, or a loss of $0.60 per basic weighted average common share [18] - As of June 30, 2025, total assets were $290.6 million, total shareholder equity was $184.7 million, and book value per share was $8.18 [19] Business Line Data and Key Metrics Changes - The company exited an equipment loan to a Nevada cultivator, impacting earnings but not book value as the loan was fully reserved [6][7] - The weighted average portfolio yield to maturity was approximately 17% as of August 1, 2025 [19] - The CECL reserve was $44 million, approximately 14.6% of loans at carrying value, with total unrealized losses of $21.5 million for loans held at fair value [19] Market Data and Key Metrics Changes - The cannabis industry remains challenging with limited capital entering the market, impacting the company's ability to invest in size [12] - The company noted that about two-thirds of cannabis opportunities do not have real estate coverage, limiting the current investment pipeline [28] Company Strategy and Development Direction - The company announced its intention to convert from a REIT to a BDC, which would allow it to invest in a broader array of opportunities, including non-real estate covered assets [13][14] - The conversion is seen as a positive step to capitalize on the cannabis sector's growth potential, especially if federal rescheduling occurs [14][16] Management's Comments on Operating Environment and Future Outlook - Management highlighted the ongoing uncertainty and volatility in the cannabis industry, which has tightened underwriting standards and reduced the investment pipeline [29] - The potential rescheduling of cannabis is expected to attract more capital into the industry, improving asset valuations and supporting the company's troubled loans [31][32] Other Important Information - The company expanded its senior secured revolving credit facility from $30 million to $50 million [19] - The proposed conversion to a BDC is subject to shareholder approval and is anticipated to occur in 2026 [16][17] Q&A Session Summary Question: Why convert to BDC versus mortgage REIT? - Management explained that many thriving cannabis operators do not own real estate, limiting investment opportunities as a REIT. The conversion to a BDC is seen as the best path for long-term value [22][24] Question: How much will the BDC conversion broaden the pipeline? - Management indicated that approximately two-thirds of cannabis opportunities do not have real estate coverage, suggesting significant potential for pipeline expansion post-conversion [28] Question: Update on problem loans with Private Company A and K? - Management provided updates on asset sales under receivership for Private Company A and clarified the accounting treatment for loans held at fair value versus carrying value [37][39] Question: What is the target debt leverage ratio? - The company targets a leverage ratio between 1.0 and 1.2 times and does not foresee issuing equity given current stock trading levels [41][42] Question: Market sentiment on mortgage REIT sector? - Management noted that mortgage REITs have traded better recently, with interest rates impacting trading and investment opportunities [45] Question: Impact of rescheduling on borrower interest? - Management stated that the rescheduling conversation is still new, and many are in a holding pattern awaiting concrete developments [49][50] Question: CECL reserves increase due to portfolio fundamentals or macro aspects? - Management indicated that while macro factors play a role, the increase in CECL reserves is primarily driven by individual loan evaluations [51][52] Question: Will BDC conversion open new credit facilities? - Management noted that while the current credit line is similar to BDC financing, it is uncertain if the structure will attract more banks to participate in cannabis lending [54][55]

Core Viewpoint - Cannabis stocks and ETFs experienced significant gains following reports that U.S. President Donald Trump is considering reclassifying marijuana to a less restrictive category, which could have major implications for the industry [1][2]. Industry Impact - The potential reclassification would move marijuana from Schedule I to Schedule III, allowing cannabis companies to claim standard business tax deductions and credits, expand access to banking, and facilitate more medical research [2][6]. - A Schedule III classification could ease banking restrictions, providing businesses with better access to banking services and attracting more investors [6]. - The reclassification could shift public perception, further legitimizing the medical cannabis industry and paving the way for broader acceptance and use of marijuana as a therapeutic agent [6][7]. - Nearly 40 states in the U.S. have already legalized marijuana in various capacities, and a federal shift could encourage more states to consider legalization [7]. Market Reaction - Following the news, cannabis stocks saw substantial increases: Trulieve Cannabis Corp. surged 35%, Tilray jumped 32%, Curaleaf Holdings climbed 29%, and Canopy Growth gained 24% [3]. - In the ETF market, Roundhill Cannabis ETF rose 29.4%, Amplify Seymour Cannabis ETF increased by 27.8%, and Amplify Alternative Harvest ETF gained 27.0% [4]. ETF Details - **Roundhill Cannabis ETF (WEED)**: Concentrated exposure to leading U.S. cannabis companies, with an asset base of $6.4 million and an average daily trading volume of 42,000 shares [9]. - **Amplify Seymour Cannabis ETF (CNBS)**: Actively managed fund with diversified U.S. exposure, holding 32 securities and an asset base of $76.2 million, trading an average of 11,000 shares daily [10]. - **Amplify Alternative Harvest ETF (MJ)**: First ETF focusing on the global cannabis industry, with an asset base of $128.5 million and an average daily volume of 54,000 shares [12]. - **AdvisorShares Pure US Cannabis ETF (MSOS)**: Actively managed ETF focusing on U.S. companies, with an asset base of $521 million and an average daily volume of $9.4 million shares [13]. - **AdvisorShares Pure Cannabis ETF (YOLO)**: Actively managed fund with a focus on both domestic and foreign cannabis equity securities, holding 22 stocks with an asset base of $31.3 million and an average daily volume of 55,000 shares [14].

重新分类将允许大麻公司适用不同的税收法规，并鼓励投资兴趣等诸多益处。Seymour资管公司的投资主管Tim Seymour表 示， 从一级管制药物调整至三级管制药物，对于这个约800亿美元的市场而言将是"游戏规则改变" 。 大麻相关股票周一表现强劲。Canopy Growth暴涨超26%，Tilray Brands飙升超过41%，Cronos Group则跳涨逾14%并创下 52周新高。 特朗普表示正在考虑重新分类大麻的危险等级，这一表态引发大麻股周一大幅上涨。 特朗普表示正在考虑将大麻改为危险性较低的药物分类，将在未来几周内做出决定。分析认为，从一级管制药物调整至三级管 制药物，对于这个约800亿美元的市场而言将是"游戏规则改变"。大麻相关股票周一表现强劲。Canopy Growth暴涨超 26%，Tilray Brands飙升超过41%。 周一，特朗普在新闻发布会上表示： 我们正在考虑重新分类大麻的危险等级，我们将在未来几周内做出决定。这是一个非常复杂的话题。 此前周五据报道，特朗普正在考虑将大麻改为危险性较低的药物分类。报道称，特朗普本月早些时候在新泽西高尔夫俱乐部 的筹款活动中透露了这一考虑。 该板块 ...