Cannabis Valuation Jumps Post-Rescheduling Recommendation, Viridian Report Reveals
Portfolio Pulse from Joana Scopel
The Department of Health and Human Services (HHS) has recommended the DEA to consider reclassifying cannabis from its Schedule I status to Schedule III. This has led to a surge in the valuation of 14 major U.S. cannabis cultivation and retail companies, as per a report by Viridian Capital Advisors. The report also highlighted the impact on agricultural technology companies due to their relationship with the cannabis industry. Trulieve Cannabis Corp (OTCQX:TCNNF) has been significantly affected by the existing regulations.
September 11, 2023 | 9:48 pm
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Trulieve Cannabis Corp has been significantly affected by the existing regulations, having spent over $220 million in taxes related to regulation 280E in just two years.
The potential reclassification of cannabis by the DEA, as recommended by the HHS, could lead to a more accommodating regulatory environment for cannabis companies like Trulieve Cannabis Corp. This could potentially reduce their tax burden and improve their cash flow, leading to a positive impact on their stock.
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