Core Viewpoint - President Trump's executive order to reschedule cannabis to Schedule 3 is considered a significant shift in federal cannabis policy, potentially alleviating the burdensome tax regime on American cannabis operators [1]. Financial Implications - The executive order may lead to the elimination of Section 280E of the Internal Revenue Code, which currently taxes legal cannabis operators as if they were narcotics traffickers, preventing them from deducting any business expenses [2][3]. - Rescheduling cannabis to Schedule 3 would allow U.S. companies to deduct standard operating costs, significantly improving their financial health and cash flow profiles [3]. Market Reaction - The cannabis industry is responding positively to the news, especially after a strong performance in 2025, where the AdvisorShares MSOS ETF outperformed the S&P 500 [4]. Investment Volatility - Despite the positive developments, the cannabis sector remains highly volatile, with many institutional investors hesitant due to past political inaction. A market "pop" is anticipated upon finalization of the rescheduling, but this is viewed as just the initial step in a longer reform process [5]. Remaining Challenges - Even with the potential rescheduling, U.S. cannabis companies still face hurdles, such as the inability to list on major exchanges like NASDAQ or NYSE, which is available to Canadian companies. Additionally, the industry is still awaiting "safe harbor" provisions for banking [6].

Financial Data and Key Metrics Changes - For fiscal year 2025, the company reported total net sales of $19.1 million, a slight decrease from $19.5 million in the prior year [16][20] - The operating loss for fiscal 2025 was approximately $2.1 million, improved from a loss of $3.3 million in 2024 [6][23] - Adjusted non-GAAP EBITDA improved from a loss of $1.7 million in 2024 to a loss of $900,000 in 2025 [6][25] - Gross profit margin for the fourth quarter of fiscal 2025 was 59%, up from 54% in the prior year [21] Business Line Data and Key Metrics Changes - E-commerce direct-to-consumer sales for the fourth quarter of fiscal 2025 were $3.5 million, a 6% year-over-year decrease [16][17] - The wholesale business generated $1.2 million in net sales for the fourth quarter of fiscal 2025, a 25% increase compared to $900,000 in the same quarter of fiscal 2024 [19][20] - For fiscal year 2025, the wholesale business generated net sales of $4.5 million, up from $3.8 million in 2024 [20] Market Data and Key Metrics Changes - Distribution for the new beverage brand, Oasis, has expanded to nine states, with improving case sell-through and growing distributor engagement [7][8] - E-commerce represented 77% of total net sales for fiscal year 2025, down from 81% in the prior year [17] Company Strategy and Development Direction - The company is focused on scaling the Oasis brand responsibly while driving efficient, profitable direct-to-consumer growth [29] - The strategy includes preserving margins and capital discipline while evaluating strategic opportunities aligned with regulatory strength [29] - The company aims to capitalize on the evolving regulatory environment, particularly with the recent executive order from the White House [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's position in the evolving regulatory landscape, highlighting the potential for increased demand for CBD products [12][30] - The company believes that the heavy lifting of the turnaround is largely behind them, with fiscal 2026 focused on improving financial performance [30] - Management noted that the executive order could lead to significant demand for quality CBD products, particularly among Medicare consumers [46] Other Important Information - The company eliminated over $7 million in annual accrued preferred dividend obligations, significantly improving working capital [9][26] - The company has a strong liquidity position entering calendar 2026, with cash and cash equivalents of approximately $2.2 million [26][28] - The NYSE American confirmed that all prior compliance deficiencies had been resolved, reflecting progress in financial stability [11] Q&A Session Summary Question: What will be the key driver of growth in 2026? - Management believes there are growth opportunities in both the core cbdMD brand and the beverage side, with visibility on growth through November [35] Question: Can you explain the decline in direct-to-consumer business? - Management indicated that the decline is tied to organizational changes and is trending slightly up over prior year periods [36][37] Question: What is the timeline for Medicare coverage of CBD products? - Management mentioned that a pilot program is expected to start on April 1st, with potential for significant demand increase [39][40] Question: How will the executive order impact the business? - Management views the executive order as a potential game changer, with significant demand for CBD products expected in the coming years [45][46] Question: How are you prioritizing growth investments for fiscal 2026? - Management indicated that the next quarter will likely see more investment in the Oasis side, with ongoing evaluations based on regulatory developments [66]

Core Viewpoint - The potential rescheduling of marijuana to a Schedule III drug under the Controlled Substances Act could significantly transform the cannabis industry, particularly benefiting Village Farms International, Inc. and its CBDistillery business [1][2]. Group 1: Company Advocacy and Legal Strategy - Village Farms commended President Trump's Executive Order aimed at rescheduling marijuana, which could modernize U.S. cannabis policy and align it with international standards [1][2]. - The company's legal strategy during DEA proceedings was pivotal in advocating for the rescheduling of cannabis, showcasing its commitment to reform and collaboration with policymakers [2]. Group 2: Production and Market Position - Village Farms operates one of the largest cannabis cultivation facilities globally, with 2.2 million square feet of greenhouse assets and 950 acres of farmland in Texas, positioning it well to meet increasing demand for medical cannabis products [2][4]. - The company has a strong foundation in controlled environment agriculture and is leveraging its expertise to expand into cannabinoid-based therapeutic products while maintaining its produce assets [3]. Group 3: International and Domestic Expansion - Internationally, Village Farms is targeting growth opportunities in legal cannabis markets, exporting medical cannabis to countries like Germany, the UK, and Australia, and expanding its export business [5]. - In the U.S., the company plans to enter the THC market using its Texas-based greenhouse assets, which include 2.2 million square feet of existing capacity and additional land for future expansion [6].

Core Viewpoint - Akanda Corp. supports potential changes in US federal cannabis policy, including the rescheduling of cannabis from Schedule I to Schedule III, which would recognize its medical value and lower abuse potential [1]. Group 1: Company Position - Interim CEO Katie Field emphasizes the need for modernization of cannabis policies, advocating for a science-led, public-health framework that could enhance medical research and consumer safety [2]. - Akanda encourages policymakers to focus on measurable outcomes such as expanding medical research and protecting public health while moving consumers away from illicit supply chains [3]. Group 2: Industry Context - The proposed changes in US cannabis policy reflect a similar approach to Canada's Cannabis Act, which established a comprehensive legal framework for cannabis, promoting responsible regulation and public health protections [2]. - The shift in policy could help align federal and state laws in the US, creating standards for responsible legal markets [2]. Group 3: Company Overview - Akanda Corp. is dedicated to cultivating and distributing high-quality cannabis and wellness products, aiming to provide safe and accessible cannabis products globally while promoting sustainable business practices [4].

Core Viewpoint - Canopy Growth (CGC) shares have experienced a significant increase due to anticipated federal initiatives, including the reclassification of cannabis as a "Schedule III" drug and a potential Medicare pilot program for seniors [1][3]. Group 1: Stock Performance - CGC shares have risen by 90% compared to their low in late November [2]. - The stock is currently trading above its major moving averages (50-day, 100-day, 200-day), indicating bullish momentum as the company approaches 2026 [4]. Group 2: Federal Initiatives - The expected federal initiatives are likely to be transformative for cannabis stocks, facilitating institutional investments and easing tax burdens and banking restrictions, which could enhance revenue potential for CGC [3]. Group 3: Financial Strength - In the latest quarter, CGC narrowed its adjusted EBITDA loss to $3 million, reflecting positive momentum in the Canadian adult-use market [5]. - The company has approximately $300 million in liquidity, positioning it well for growth initiatives without immediate financial pressure [5]. Group 4: Strategic Acquisitions - Canopy Growth's recent acquisition of MTL Cannabis for about $179 million is expected to increase its domestic market share and contribute high-margin revenue [4]. Group 5: Historical Performance - CGC stock has historically performed well at the beginning of the year, averaging a 12% increase in January since 2015, supporting the case for maintaining exposure to the stock heading into 2026 [6][7].

Core Insights - U.S.-listed cannabis stocks are gaining attention due to potential federal marijuana policy changes, specifically the reclassification of cannabis from Schedule I to Schedule III under the Controlled Substances Act [1][2] - This reclassification could lead to significant federal reforms, easing regulatory pressures, reducing taxes, and attracting institutional capital, which has already resulted in a rally in cannabis equities [2][3] Industry Overview - The potential rollback of Section 280E is a key factor, as it currently prevents cannabis companies from deducting ordinary business expenses, which would improve after-tax profitability and cash flow if reclassified [3] - Better access to banking and capital markets could support valuation expansion for financially disciplined operators [3][4] Company Analysis: Tilray Brands - Tilray Brands (NASDAQ: TLRY) is positioned to benefit from renewed optimism around federal reform, reporting approximately $200 million in revenue, with cannabis contributing nearly half [5] - The company achieved positive adjusted EBITDA of about $13 million and returned to net profitability, ending the quarter with over $400 million in cash and marketable securities [6] - Tilray's valuation is sensitive to regulatory changes, and it serves as a primary entry point for institutional investors, which could lead to accelerated capital inflows upon confirmation of reclassification [7][8] Company Analysis: Canopy Growth - Canopy Growth (NASDAQ: CG) is seen as a leveraged play on U.S. cannabis reform, with a stock rally of over 50% following regulatory news, closing at $1.74 [11] - For Q2 fiscal 2026, Canopy reported approximately $49 million in revenue, with adult-use cannabis revenue increasing by about 30% year-over-year and medical cannabis revenue rising roughly 17% [13] - Although still unprofitable, Canopy's adjusted EBITDA losses are narrowing, and its liquidity position has improved, with cash exceeding total debt by approximately $51 million [14][15]