Industry Overview - 2026 is anticipated to be a significant year for the marijuana industry, particularly due to the rescheduling of cannabis by Donald Trump, which is expected to bring positive changes [1] - The speculation surrounding reform news often leads to increased trading activity in cannabis stocks, as investors look to capitalize on potential gains [2] - The growing consumer demand for cannabis, both medical and recreational, is driving companies to expand their operations [2] Company Highlights - **Glass House Brands Inc.** reported Q3 2025 earnings with revenue of $38.4 million, exceeding guidance but down from $63.8 million the previous year. The gross profit margin was 31%, significantly lower than 52% in Q3 2024 [9] - **Ayr Wellness Inc.** is undergoing a transition in leadership as it winds down its existing corporate entity and moves forward with new assets [11] - **Ascend Wellness Holdings, Inc.** announced a partnership with Mister Jones in New Jersey, marking a significant milestone under recent legislation. This partnership aims to ensure a steady product flow and support for retail space [14]

Core Viewpoint - The cannabis industry is poised for significant growth by 2026, especially following the rescheduling of cannabis to a Schedule III substance, which may enhance investor confidence and lead to substantial returns in marijuana stocks [1][2][3]. Industry Overview - The cannabis sector is transitioning towards a more corporate structure, benefiting larger multi-state operators (MSOs) while potentially squeezing out smaller craft and mom-and-pop operators [2][3]. - The new legislation may create opportunities for all players in the market, although concerns remain about the quality of products from larger MSOs compared to smaller growers [3]. Company Highlights - **Trulieve Cannabis Corp.**: Operates as a cannabis retailer, cultivating, processing, and distributing cannabis products through dispensaries and home delivery. The company expressed appreciation for the rescheduling of cannabis [4][6]. - **Curaleaf Holdings, Inc.**: Engages in the production and distribution of cannabis products both domestically and internationally. Recently opened its second dispensary in Erie, Pennsylvania, expanding its footprint to 18 stores in the state and 159 nationwide [8][10]. - **Cresco Labs Inc.**: Focuses on cultivating, manufacturing, and selling retail and medical cannabis products in the U.S. and Germany. The CEO highlighted the significance of cannabis being reclassified as a Schedule III substance, marking a cultural turning point for the industry [11][13].

Industry Overview - The marijuana sector is currently trading at low share prices, but upcoming reforms and rescheduling may lead to a rebound in stock prices [1][2] - The cannabis market is experiencing growth not only in the US but also in Canada and Europe, with Canada being the first country to fully legalize cannabis [1] Regulatory Changes - The US has reclassified cannabis as a Schedule 3 substance, which may facilitate collaboration with foreign markets and improve the public sector's growth prospects [2] - There is a call for legislative alignment with the new cannabis rescheduling to support safe banking reforms, which would enhance financial transaction security in the cannabis industry [5] Company Highlights - **Planet 13 Holdings Inc.** focuses on cultivating and providing cannabis products for medical and retail markets in the US and supports the new cannabis bill introduced by Trump [4][10] - **FLUENT Corp.** has sold its Pennsylvania operations for US$12.5 million, aiming to strengthen its balance sheet and focus on markets with greater opportunities [7][8] - **Glass House Brands Inc.** operates in retail, wholesale biomass, and cannabis-related consumer packaged goods, and supports the rescheduling of cannabis, viewing it as a significant drug reform [10]

2026 Marijuana Stocks To Watch As The Sector Begins To ChangeIn 2026, the impact of cannabis rescheduling is expected to be far more visible in marijuana stock performance. Much more than in the initial announcement of cannabis becoming a Class 3 substance. While 2025 seemed to be a transition year, 2026 could mark another pivot point. Specifically, one where improved business operations begin to consistently translate into stronger equity valuations across the sector. Investor sentiment may also shift mean ...

Here’s What To Know About Cannabis Stocks Now That Marijuana Is A Class 3Donald Trump’s recent executive order moving cannabis off Schedule I marks a pivotal moment for the U.S. cannabis sector. While the order does not legalize marijuana at the federal level, rescheduling fundamentally changes how the plant is viewed under federal law. With meaningful implications for operators, investors, and public markets. For the cannabis industry, the most immediate impact is financial. A shift to Schedule III would e ...

Market Overview - The market has experienced volatility, likened to the "Three Stooges," with tech stocks fluctuating significantly due to AI developments and inflation data [2][3] - The Consumer Price Index (CPI) indicated positive inflation trends, but concerns about data accuracy arose due to the government shutdown [3] - Unemployment rose to 4.6%, but this figure may be overstated, suggesting a more favorable employment situation [3] Job Market Insights - Jobless claims have shown a slight dip, providing a reliable indicator amidst other fluctuating data [4] - The overall market sentiment suggests a flat trajectory for December, with alternating good and bad news days expected [5] IPO Market Developments - Medline's IPO was the largest of the year, raising over $6 billion and marking the biggest IPO since Rivian in 2021, with a stock price increase of 40% [6] - Anticipation surrounds SpaceX's potential IPO, with speculation about a valuation of $1.5 trillion, although no timeline has been established [7][8] Cannabis Industry Updates - The signing of an executive order by President Trump reclassifies marijuana from a Schedule I to a Schedule III drug, allowing companies to deduct business expenses, potentially boosting cash flows by up to $150 million [11][12][13] - Despite initial stock price increases, marijuana stocks experienced a decline following the executive order, indicating a "buy the rumor, sell the news" scenario [11][14] - Many cannabis companies are involved in both farming and distribution, which may impact their operational strategies moving forward [15]

Core Perspective - The recent executive order signed by President Trump reclassifies marijuana to a "Schedule III" drug, significantly changing its legal status and implications for the industry [2][5]. Industry Implications - The reclassification allows the $60 billion marijuana industry in the US to access banking services, which were previously restricted due to its "Schedule I" status [6][9]. - Wall Street is expected to become more involved in the marijuana sector, providing easier financing options for companies that handle marijuana, moving away from reliance on alternative funding methods [7][10]. Regulatory and Economic Benefits - A Schedule III classification enables safer regulation of marijuana, potentially reducing income for drug cartels and increasing tax revenues as the industry expands [11]. - The medical community may benefit from increased marijuana use as an alternative to opioids, which are more dangerous and addictive [11]. Political Context - The move is seen as politically advantageous for Trump, appealing to a demographic of single-issue voters who support marijuana legalization [13][14]. - Public perception of marijuana has shifted, with many Americans viewing it as less dangerous than alcohol, aligning with the president's decision [14].

Core Insights - President Trump signed an executive order to expedite the rescheduling of marijuana at the federal level, potentially reshaping the regulatory framework and recognizing its medical use [1][11] Executive Order Details - The executive order directs federal agencies to reclassify marijuana from Schedule I to Schedule III of the Controlled Substances Act (CSA) [2][11] - An executive order does not create new laws but instructs federal agencies to implement policy changes consistent with existing laws [3] Current Classification and Implications - Marijuana is currently classified as Schedule I, alongside substances like heroin, which are deemed to have no accepted medical use [4] - Reclassifying marijuana to Schedule III would align it with drugs recognized for medical use, such as ketamine and testosterone, which have a lower abuse risk [4] Medical Use and CBD Developments - The order emphasizes marijuana's legitimate medicinal uses, particularly as an alternative to opioid painkillers, while clarifying it does not legalize recreational use [5][11] - The executive order may also allow certain CBD-based products to be eligible for Medicare coverage by April 2026 if prescribed by a physician [5] Industry Impact - The executive order is seen as a significant regulatory milestone for the cannabis sector, which has long sought to remove marijuana from Schedule I [7] - Moving to Schedule III could alleviate tax burdens, improve profitability by eliminating IRS Rule 280E, and enhance research access and industry credibility [8] Cautionary Notes - Experts caution that the executive order may not be as transformative as anticipated, as it does not legalize marijuana federally or resolve state-federal law conflicts [9] - Access under Schedule III would remain strictly medical and prescription-based, with no pathway for recreational legalization or unrestricted sales [9] Market Reaction - The announcement has sparked renewed investor enthusiasm, with notable gains in cannabis stocks such as Tilray Brands, Canopy Growth Corporation, and Curaleaf Holdings [12] Future Considerations - The ultimate impact of the executive order will depend on the speed of agency actions, regulatory implementation, and Congressional follow-through, which has historically been inconsistent [13]

President Trump has signed an executive order to reclassify marijuana from a schedule one to a schedule three drug. While not making it fully legal, it would ease federal restrictions. Joining us right now with what this means for the marijuana industry and personal consumption is Kevin Sabbat.He is the CEO of Smart Approaches to Marijuana, a former White House Drug Policy Advisor, and he's the author of One Nation Under the Influence. Kevin, first of all, thank you uh for being here. It's been a while sinc ...

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