🖋️ Trump Signs Executive Order to Reclassify Cannabis to Schedule III
The Cannabist Company finds new Buyer for Virginia Assets after Go-Shop, Terminates Sale to Curaleaf. Vireo to acquire Certain Colorado Assets from PharmaCann for $49M in stock.
🌿 Industry
Trump Signs Executive Order Reclassifying Cannabis to Schedule III. The move will free the $32 billion legal U.S. cannabis industry from 280E. — Washington Post
A year-long campaign by industry leaders, including Trulieve CEO Kim Rivers and financial executive Howard Kessler, was instrumental in persuading the President
“For seniors, CBT (cannabinoid-based therapies) is a game changer offering safe, evidence-based options for chronic conditions that traditional meds often fail,” Howard Kessler, a longtime Trump supporter and the founder of the Commonwealth Project, a pro-medical cannabis group
If cannabis is reclassified to Schedule III, it would mark the first time a substance not approved by the FDA is placed in that category, adding pressure on the agency to enforce marketing of products, said Kevin Sabet, president of Smart Approaches to Marijuana, which advocates against legalization
Interest expense would become tax-deductible, reducing the after-tax cost of debt, which could enable them to borrow additional amounts from lenders
AIQ suggests that rescheduling will raise the bar for operational maturity. Flowhub recommends operators should work with accountants and advisors to understand how and when 280E relief applies to their specific situation.
On Monday, December 22, Vicente is hosting an online briefing, “Marijuana to Schedule III: What Changes, What Doesn’t, and What Comes Next”
What Schedule III Could Mean for the Cannabis Industry. Headset’s latest report, Rescheduling to Schedule III: Why Ending 280E Could Matter Most in a Shrinking-Margin Industry, examines how a potential move to Schedule III and the removal of Section 280E could affect the industry’s cash flow dynamics using transaction-level retail data and modeled scenarios. — Headset
Headset data show that average U.S. cannabis retail gross margins declined from 52.6% in 2021 to approximately 42.7% in 2025 year to date, a compression of nearly 10 percentage points
In 11 of 24 states, the modeled median retailer has negative after-tax profit under 280E. In several markets, the modeled federal tax burden exceeds total net profit
Under benchmark assumptions (operating expenses modeled at 35% of sales and a 21% federal tax rate), the typical median retailer shows approximately $268,000 per year in modeled federal 280E tax drag. In higher-volume states, that figure can reach around $805,000 per store annually. At the industry level, this translates into an estimated $1.6B to $2.2B per year in incremental after-tax cash flow at current sales levels, based on Headset’s sensitivity analysis
Dozens of Alabama doctors are preparing to recommend medical cannabis. Russell Sellers, director of communications for the Medical Association of the State of Alabama (MASA), said about 60 doctors have taken the three-and-a-half-hour course.
💵 Deals
Curaleaf Terminates Equity Purchase Agreement with The Cannabist Company. A competing bid from an affiliate of Millstreet Credit Fund LP following a Go-Shop valued the Virginia Assets at $130M plus the assumption of a $30M lease liability. After a rigorous due diligence process, Curaleaf determined this amount exceeded the rational fair value for the assets. As noted in its release dated December 2, Curaleaf expects to receive a break fee of $3.3M upon cancellation of its original binding commitment.
Vireo to acquire Certain Colorado Assets from PharmaCann for $49M in newly issued Vireo shares. The acquired assets further optimize Vireo’s operating footprint in Colorado with the addition of 17 dispensaries. The transaction will expand Vireo’s position in Colorado’s adult-use retail market to 41 total active dispensaries, and is subject to satisfaction of closing conditions and state and local regulatory approvals.
Canopy Growth to acquire MTL Cannabis for ~$179M. Under the terms of the Arrangement Agreement, each shareholder of MTL will receive fixed consideration for each MTL Share equal to: (i) 0.32 of a common share of Canopy Growth and (ii) $0.144 in cash. MTL was founded by Québec-based entrepreneurs and brothers, Richard and Michel Clément, who built the company around a deep commitment to cultivating high-quality cannabis flower. Canopy Growth intends to leverage the expertise of the MTL team as it continues to elevate its cannabis product portfolio. MTL had net revenue of $84 million, 51% GM, and $11M in operating cash flow for the TTM period ended September 30, 2025.
Petalfast x Sunderstorm to Combine Distribution Capabilities in CA. The transaction, slated for completion in Q1 2026, marks Petalfast’s major entry into California distribution and includes exclusive, long-term rights to distribute Sunderstorm’s KANHA premium edibles line. The deal transforms Petalfast into a full-service California distributor, with statewide reach through Sunderstorm’s NorCal and SoCal hubs, best-in-class technology, delivery fleet, proven AR/cash collection systems and an experienced workforce.
Trulieve Closes $140M Private Placement of 10.5% Senior Secured Notes. The Notes were issued at 100% of face value and are senior secured obligations of the Company. The Notes bear interest at a rate of 10.5% per annum, payable semi-annually in equal installments until the maturity date, unless earlier redeemed or repurchased. The Notes will mature on December 17, 2030, and may be redeemed in whole or in part, at any time from time to time, on or after December 17, 2027 at the applicable redemption price set forth in the second supplemental indenture governing the Notes.
📄 Company Updates
$1M a year in taxes at stake in Glass House Brands, Ventura County fight. Glass House Brands is appealing the County of Ventura’s valuation of its giant cultivation outside of Camarillo and seeking a refund of what it claims are millions of dollars in excess property taxes paid over the past four years. More than three years after Glass House filed its appeal, the case is awaiting a decision by the Ventura County Board of Assessment Appeals. The appeals board will issue a ruling by September 2026.
🏬 Retail
Mint Cannabis expands into Florida with 18 community-focused dispensaries. Thirteen new Mint Cannabis dispensaries are currently open in Bonita Springs, Bradenton, Brandon, Cape Coral, Delray Beach, Gainesville, Jacksonville, Longwood, Melbourne, Orlando, St. Augustine, Sarasota, and Stuart. Five additional dispensaries, in Homosassa, Madison, Miami, Spring Hill, and Riverview will open in the coming months. The Mint team also anticipates opening several additional dispensaries in Florida by the end of 2026.
King City Gardens Expands Retail Footprint With Two New Dispensaries. The Garden – Sycamore Township in the Greater Cincinnati region and The Garden – Mansfield in North-Central Ohio. Additional sites planned across Ohio through 2026.
Trulieve-Branded Dispensary to Open in Findlay, OH. Harvest Grows will operate the dispensary under the Trulieve brand through a licensing agreement.
Minnesota Signs Cannabis Agreement with Red Lake Band of Chippewa Indians. Darrell G. Seki, Sr., Chairman of the Red Lake Nation, noted that the Red Lake Nation’s NativeCare dispensary was the site of the first legal sale.
🌱 Product
Aurora Launches Daily Special™ in Germany. Available at German pharmacies and through Telemedicine platforms from December 19, 2025, the Daily Special launch introduces a sativa-dominant cultivar born from Gelonade × Biscotti, with a range of 21-23% THC < 1% CBD. Delivering a vibrant sensory experience highlighted by intense citrus, sweet-earthy, and diesel-forward aromas and a rich terpene profile contributes to its distinctive character and premium appeal.
🧔 People
IM Cannabis Appoints Asi Levi as New CFO. Levi has over 15 years of experience in finance and controlling roles, including serving as CFO of Water Ways Technologies.
Cannabis entrepreneur Duke Rodriguez joins the race for New Mexico governor. Before launching Ultra Health in 2010, Rodriguez served as secretary of New Mexico’s Human Services Department under former Gov. Gary Johnson and was a senior executive for Lovelace Health System. Ultra Health has become New Mexico’s largest medical cannabis company.
🎙️ Interviews
Cannabis Schedule III Breakdown | Higher Exchanges
Schedule III Changes Everything — This Is Just the Beginning | The Dime
Al Harrington: The Heart of a Lion | CannabisNow