Rescheduling Cannabis: What Are The Implications For MSOs, Tax Rule 280E, FDA And Pharma?
Portfolio Pulse from Nicolás Jose Rodriguez
The potential rescheduling of cannabis and removal of Tax Rule 280E could boost profits for U.S. businesses, but Zuanic and Associates' report warns of complexities and overlooked consequences. Rescheduling medical marijuana (MMJ) could lead to stricter FDA regulations, limit prescription accessibility, and invite pharmaceutical companies into the industry. For Multi-State Operators (MSOs), rescheduling could alleviate the 280E burden but also introduce regulatory challenges. In 2022, 16 MSOs paid $761 million in corporate income tax, while the entire industry paid $1.2-1.5 billion.

August 04, 2023 | 9:53 am
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The potential rescheduling of cannabis could impact the Amplify Seymour Cannabis ETF (NYSE:CNBS) due to regulatory changes and potential increase in profits for cannabis businesses.
The potential rescheduling of cannabis could lead to regulatory changes that could impact the performance of the Amplify Seymour Cannabis ETF. Additionally, the potential increase in profits for cannabis businesses could also affect the ETF.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 75
NEUTRAL IMPACT
The potential rescheduling of cannabis could impact the ETFMG Alternative Harvest (NYSE:MJ) due to regulatory changes and potential increase in profits for cannabis businesses.
The potential rescheduling of cannabis could lead to regulatory changes that could impact the performance of the ETFMG Alternative Harvest. Additionally, the potential increase in profits for cannabis businesses could also affect the ETF.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 75
NEUTRAL IMPACT
The potential rescheduling of cannabis could impact the Global X Cannabis ETF (NASDAQ:POTX) due to regulatory changes and potential increase in profits for cannabis businesses.
The potential rescheduling of cannabis could lead to regulatory changes that could impact the performance of the Global X Cannabis ETF. Additionally, the potential increase in profits for cannabis businesses could also affect the ETF.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 75
NEUTRAL IMPACT
The potential rescheduling of cannabis could impact the AXS Cannabis ETF (NYSE:THCX) due to regulatory changes and potential increase in profits for cannabis businesses.
The potential rescheduling of cannabis could lead to regulatory changes that could impact the performance of the AXS Cannabis ETF. Additionally, the potential increase in profits for cannabis businesses could also affect the ETF.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 75
NEUTRAL IMPACT
The potential rescheduling of cannabis could impact the Cambria Cannabis ETF (BATS:TOKE) due to regulatory changes and potential increase in profits for cannabis businesses.
The potential rescheduling of cannabis could lead to regulatory changes that could impact the performance of the Cambria Cannabis ETF. Additionally, the potential increase in profits for cannabis businesses could also affect the ETF.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 75
NEUTRAL IMPACT
The potential rescheduling of cannabis could impact the AdvisorShares Pure Cannabis ETF (NYSE:YOLO) due to regulatory changes and potential increase in profits for cannabis businesses.
The potential rescheduling of cannabis could lead to regulatory changes that could impact the performance of the AdvisorShares Pure Cannabis ETF. Additionally, the potential increase in profits for cannabis businesses could also affect the ETF.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 75