Trump just made the biggest federal cannabis move in over 50 years, and Wall Street is already reacting. I'm Bernie Gomez at CNBC headquarters, and President Trump has officially signed an executive order reclassifying cannabis, moving it out of schedule one, the same category as heroin, and into schedule 3. That change eases restrictions on research, banking, and taxes, and could reshape the entire cannabis industry.Now, Trump says the move is about patients, including veterans, seniors, and people with ch ...

Core Insights - The cannabis industry is transitioning towards a phase where identity is becoming more significant than narrative as federal oversight begins to take shape [1] - The industry is moving away from a fragmented state system towards a more unified regulatory framework that resembles other regulated categories [1] Industry Overview - Federal oversight is expected to streamline the cannabis industry, reducing the complexity of the current patchwork of state regulations [1] - This shift may lead to increased legitimacy and stability within the cannabis market as it aligns more closely with established regulatory frameworks [1]

Core Insights - The reclassification of cannabis from Schedule I to Schedule III under the U.S. Controlled Substances Act is a transformative breakthrough for the cannabis industry, enhancing its medicinal recognition globally and promoting balanced governance [2][3] Industry Impact - This policy shift aligns federal policy with public opinion in the U.S., where nearly 90% of citizens support some form of legalization, and 74% reside in states with active cannabis programs [3] - The change is expected to foster international collaboration in medical research and acknowledges the efforts of policymakers in countries like Canada that have established consumer-focused cannabis systems [3] Company Opportunities - For Herbal Dispatch, the rescheduling opens new avenues for growth, enabling the company to explore strategic partnerships and expand its product reach into emerging U.S. markets [4] - The company anticipates improved access to capital for technological advancements in its supply chain and customer platforms, enhancing operational efficiencies and positioning it to meet rising global demand [4] - The company expresses support for the U.S. government's decision and reaffirms its commitment to building a credible and innovative cannabis platform for global communities [5]

Core Viewpoint - The recent executive order from the Trump administration to reschedule cannabis to a Schedule III classification and authorize a pilot program for Medicare reimbursement of CBD is seen as a significant drug reform, enhancing access to cannabis for medical purposes [2][3]. Company Overview - Glass House Brands Inc. is recognized as one of the fastest-growing, vertically integrated cannabis companies in the U.S., focusing on the California market and building strong brands across various consumer segments [4]. Market Opportunities - The rescheduling of cannabis is expected to create export opportunities into international markets, with Glass House positioned to capitalize on the growth of the U.S. CBD market [3]. - The Medicare reimbursement program will allow over 60 million seniors to receive $500 per year for CBD, creating a market exceeding $30 billion [3]. Production and Development - Glass House has a low-cost, high-quality cannabinoid production model and is prepared to be a leading supplier in the emerging CBD market [3]. - The company is actively developing CBD products in compliance with new federal regulations and is collaborating with the University of California Berkeley on hemp research [3]. Operational Readiness - The company has ramped up its cultivation efforts, achieving the most acreage planted in its history, and plans to continue expanding in early 2026 [3].

Regulatory Landscape & Policy - The executive order directs the Attorney General to expedite the process for marijuana reclassification from schedule one to schedule three, but it doesn't enact any new changes [13] - The reclassification process started in the last administration as a political issue [14] - The executive order does not legalize banking for the marijuana industry, which caused pot stocks to fall [14] - The reclassification will allow for tax breaks for the marijuana industry, which could increase advertising and promotion [15][16] Health & Societal Concerns - Today's marijuana is 10 to 30 times stronger than it once was, with some cases reaching 99% THC [4] - Increased THC levels are linked to psychosis, violence, reduction in IQ, heart failure, diabetes, and stroke [5] - Medical associations worldwide agree that marijuana consumption is not beneficial and is causing addiction [7] - 30% of medical marijuana users are addicted to marijuana [10] - Concerns exist regarding the impact of marijuana legalization on the workforce, including pilots, doctors, and bus drivers [10] Market & Investment - Investors were disappointed that the executive order didn't legalize banking, leading to a drop in pot stocks [14] - Some marijuana stocks increased due to potential tax breaks, but not as much as anticipated [15] - There is no momentum in Congress for federal legalization [26] - Some states are considering repealing marijuana sales legalization [12][26]

Core Insights - Curaleaf Holdings, Inc. has terminated its binding commitment to acquire The Cannabist Company's Virginia assets due to a competing bid that valued the assets at $130 million plus a $30 million lease liability, which was deemed to exceed the rational fair value [1] - The company expects to receive a break fee of $3.3 million upon cancellation of the original commitment [1] - Curaleaf will maintain an opportunistic and disciplined approach in its acquisition strategy moving forward [2] Company Overview - Curaleaf Holdings, Inc. is a leading international provider of consumer cannabis products, with a mission to enhance lives through the power of the plant [3] - The company is recognized for its high growth, quality, expertise, and reliability, offering a wide range of products and services across medical and adult-use markets [3] - Curaleaf operates a strong distribution network throughout Europe, Canada, and Australasia, integrating pioneering science and research with advanced cultivation, extraction, and production techniques [3]

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 ...

Group 1: Canopy Growth and MTL Acquisition - Canopy Growth's CEO Luc Mongeau emphasizes that MTL's cultivation expertise, combined with Canopy's scale, will enhance product quality, expand supply, and accelerate profitable growth [1] - Under the acquisition agreement, MTL shareholders will receive 0.32 of a common share of Canopy Growth and 14.4 cents in cash for each MTL share [1] - Canopy shares closed at $2.40 on the Toronto Stock Exchange on the day of the announcement [1] Group 2: BlackBerry Financial Performance - BlackBerry reported a third-quarter profit of US$13.7 million, a significant improvement from a loss of US$10.5 million in the same period last year [4][7] - The company's revenue for the third quarter was US$141.8 million, a slight decrease from US$143.6 million year-over-year [5][7] - The QNX segment achieved record revenue of US$68.7 million, reflecting a 10% increase from US$62.3 million a year earlier [5] Group 3: Transat A.T. Financial Performance - Transat A.T. reported a loss of $12.5 million in its fourth quarter, contrasting with a profit of $41.2 million in the same quarter last year [10][13] - Revenue for the fourth quarter totaled $771.6 million, down from $788.8 million a year ago, although revenue increased by 1.5% when excluding prior compensation related to Pratt & Whitney GTF engine issues [11] - On an adjusted basis, Transat reported a loss of 42 cents per share compared to an adjusted profit of 81 cents per share in the same quarter last year [12]

Core Points - President Donald Trump's decision to relax federal marijuana regulations has been positively received by the US cannabis industry, indicating a potential shift in federal policy towards cannabis [1] - Despite the regulatory changes, the cannabis sector continues to face significant challenges, particularly in accessing mainstream financial services and banking [1] Industry Summary - The US cannabis industry is experiencing a moment of optimism due to the relaxation of federal regulations, which may lead to increased investment and growth opportunities [1] - Access to traditional banking and financial services remains a critical issue for the cannabis sector, hindering its ability to operate on par with other industries [1]

Core Viewpoint - President Donald Trump's executive order marks a significant shift in federal cannabis policy, directing federal agencies to loosen regulations on marijuana [1] Regulatory Changes - The order instructs U.S. Attorney General Pam Bondi to expedite the rescheduling of marijuana to Schedule III under the Controlled Substances Act, aligning it with common painkillers but not fully legalizing it [2] - Marijuana's current classification as a Schedule I substance has limited research opportunities, and reclassification aims to enhance studies on safety and effectiveness, particularly for vulnerable populations [4] Access to CBD Products - The order outlines steps to improve access to hemp-derived cannabinoid products, especially cannabidiol (CBD), which currently lacks a clear regulatory pathway through the FDA [5] - It directs the White House Deputy Chief of Staff to collaborate with Congress to expand access to full-spectrum CBD products while restricting those posing health risks [6] Political Reactions - Senate Minority Leader Chuck Schumer supports the order, viewing it as a positive step, but emphasizes the need for further decriminalization and easing banking regulations for the cannabis industry [7] - Conversely, some Republican senators, including Ted Budd, criticize the order as shortsighted and potentially harmful to youth [7][8] Market Reactions - Cannabis stocks initially surged following the announcement but retreated by the close, attributed to the lack of expected cannabis banking provisions in the order [9] - Despite the retreat, major cannabis stocks have seen significant gains throughout the month in anticipation of the executive order [11]