Cannabis Tax Changes Could Trigger 504% Cash Flow Leap, Which Industry Players Will Benefit?
Portfolio Pulse from Nicolás Jose Rodriguez
The Department of Health and Human Services' recommendation to reclassify marijuana as a Schedule III drug could significantly boost cash flows for cannabis companies. Following the news, MSOS ETF surged by 21%, while State House Holdings, Columbia Care, Jushi, and Ayr Wellness also saw substantial gains. The removal of Section 280E could reduce income tax rates for profitable cannabis companies and provide a significant cash flow benefit.
August 31, 2023 | 8:34 pm
News sentiment analysis
Sort by:
Ascending
POSITIVE IMPACT
Ayr Wellness could see its cash flow augmented by $84 million, a 504% surge in line with CY22 data.
The company's cash flow could significantly increase due to the potential tax benefits from the reclassification of marijuana.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Columbia Care saw a 38% boost following the news of marijuana reclassification.
The company's stock price increased following the news, indicating a positive market reaction. This could continue in the short term as the market digests the implications.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Jushi saw a 32% increase following the news of marijuana reclassification.
The company's stock price increased following the news, indicating a positive market reaction. This could continue in the short term as the market digests the implications.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
MSOS ETF surged by 21% following the news of marijuana reclassification.
The ETF surged following the news, indicating a positive market reaction. This could continue in the short term as the market digests the implications.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
State House Holdings could see a potential cash flow benefit of over $59 million, a 2200% increase based on CY22 numbers.
The company's cash flow could significantly increase due to the potential tax benefits from the reclassification of marijuana.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 90