III

ffo_kcuf_og

Based on Carvana's financial filings for 2025, the volume of dollar transactions with **DriveTime** and other related parties is disclosed across several categories. Note that while DriveTime is a significant related party, Carvana's filings often group "related party" transactions together, which includes entities controlled by the Garcia family. # 2025 Related Party Transaction Volume According to the **Q2 2025 Financial Results**, transactions with related parties for the first six months of 2025 included: * **Wholesale Sales and Revenues:** Carvana generated **$17 million** from related parties through wholesale channels during the first half of 2025.   * **Cost of Sales:** Carvana paid **$7 million** to related parties for vehicle-related costs. * **Selling, General, and Administrative (SG&A) Expenses:** Carvana incurred **$15 million** in SG&A expenses paid to related parties, which often includes lease and service agreements.   # Specific Balances and Agreements As of the **June 30, 2025 balance sheet**: * **Due to Related Parties:** Carvana owed **$62 million** to related parties ($24 million in accounts payable and $38 million in other current liabilities).   * **Lease Obligations:** Carvana maintains several lease agreements with[DriveTime](https://investors.carvana.com/~/media/Files/C/Carvana-IR/documents/annual-report-2024.pdf)for inspection and reconditioning centers (IRCs), with right-of-use assets totaling **$8 million** from these leases as of mid-2025. * **Service Agreements:** The[2025 Proxy Statement](https://investors.carvana.com/~/media/Files/C/Carvana-IR/documents/proxy-statement-2025.pdf)notes that while major agreements are established, the company periodically enters into minor transactions with DriveTime that do not exceed $120,000 individually. # Important Clarification It is important to note that **DriveTime is not a subsidiary of Carvana**. They are separate companies that are considered "related parties" because they are both controlled by **Ernest Garcia II** and **Ernest Garcia III** (the "Garcia Parties").

baronnest

Thanks for the write up! Their new patent filed on December 9th leads me to believe they're in the final stages of a deal with a major fab. My bet is on Tower Semi. The 300mm wafer patent signifies that they fit together perfectly. Here's my post on it that I shared on Linkedin Aeluma ’s New Patent: The Manufacturability Key to Mass-Market Silicon Photonics? When the GlobalFoundries /AMF news hit, I’ll be honest—it temporarily worried me. For a moment I thought: are they pulling ahead on scalable silicon photonics, and does that put Aeluma behind in the race? Then Aeluma ($ALMU) filed a new patent (Dec 9) aimed at volume manufacturing of compound semiconductor photonics on large-diameter, mismatched substrates—and it did the opposite of what I expected: it quelled those fears and actually strengthened my thesis. The setup: • Tower Semiconductor ($TSEM) is expanding its 300mm silicon photonics / heterogeneous integration capabilities with an eye toward CPO and data-center scale. • Aeluma is building IP around the hard part: bringing III–V-class photonics to 12-inch silicon economics with manufacturable yield. The bottleneck (still the same): Performance isn’t the constraint—scale and yield are. The question is how you get high-performance compound semiconductor photonics onto big silicon wafers without defect-driven yield collapse. My take (hypothesis): This is why I’m increasingly leaning toward a strategic partnership (not a buyout) as the “seal-the-deal” path: • Tower brings the volume manufacturing vehicle and foundry infrastructure. • Aeluma brings differentiated integration IP that could become the performance engine. And yes—this is speculation—but the cadence and positioning feels like the kind of IP groundwork you lay when commercial conversations are already serious. NDAs may already be in place; I can’t prove that, but the pattern fits what you’d expect when partners are aligning process + product roadmaps behind the scenes. What would confirm it (watch-fors): • a named or strongly implied foundry/process partner • language shifting from “evaluation” to design-in / NRE / PO • repeatable wafer-run evidence (yield, scalability) rather than just “it works” Bottom line: In silicon photonics, manufacturability is the moat. This patent reads less like academic progress and more like industrialization intent—and it reinforces why Tower looks like the most logical volume partner on the horizon. #SiliconPhotonics #Semiconductors #CoPackagedOptics #DataCenters #Aeluma #TowerSemiconductor #TechInvesting #ARVR #Mobile https://www.aeluma.com/investors/news-events/press-releases/detail/91/aeluma-files-new-patent-that-enhances-intellectual-property

fooish_moral

gold maples on sale at my bullion dealer but charles III on it ghey af... why dude even on it canadia?

avatarfire

Time for Opium War III

Many_Easy

Market manipulator **Doug Kass** in May 2024 (20 months ago) hyping DEA approval. **What’s the latest with this charlatan?** Article quoting **Doug Kass** on cannabis rescheduling: Reform: Our Industry’s Great Divide — MJ Magazine — This article quotes Kass’s post on X that said: **”We have learned yesterday that the U.S. Drug Enforcement Administration will shortly approve a rescheduling of cannabis to Schedule III…”** according to his social-media posts. https://mgmagazine.com/business/legal-politics/reform-our-industrys-great-divide/

hambone_83

https://vicentellp.com/insights/cannabis-rescheduling-explained/ The DOJ could immediately issue a Final Order rescheduling marijuana to Schedule III under 21 U.S.C. § 811(d). To do so, the Attorney General would rely on an Office of Legal Counsel (OLC) opinion concluding that the United States can satisfy its international treaty obligations by placing marijuana in Schedule III, provided that rescheduling is accompanied by specific regulatory controls (e.g., production quotas and import/export permitting). Unlike Epidiolex, botanical marijuana is not approved by the Food and Drug Administration (“FDA”); however, Section 811(d) affords the Attorney General broad discretion to select the schedule deemed most appropriate to meet treaty obligations, independent of FDA approval status. By citing the need to comply with international treaties while acknowledging the scientific findings of the Department of Health and Human Services (“HHS”), the DOJ could issue a Final Order rescheduling marijuana to Schedule III without completing the administrative hearing process.

Snoo_73630

“POET is at the mercy of InP suppliers” That’s directionally true, but less severe than implied. POET does not consume InP at the same scale as traditional fully-InP PIC vendors. Their architecture uses a much smaller III-V die, disaggregates functions and improves yield dramatically, so less InP per optical engine. Rising InP prices will hurt everyone but POET is relatively more insulated than the likes of monolithic InP PICs and vertically integrated laser fabs

RevolutionaryPlum389

I went back and studied the timing of major announcements coming out of the Trump administration, and the pattern is hard to ignore. The executive order was announced on the exact same day Congress mandated the release of the Epstein files, December 19th. We already know there are millions of pages still under review, and the administration has openly admitted it needs “a few more weeks” for redactions. That delay isn’t random. Once the final tranche of documents is released, I expect Trump to immediately move to formalize Schedule III into law, not just as policy, but as a media counterweight. This is how narratives get buried. Big revelations are rarely allowed to stand alone. Notice how Nigeria was bombed on Christmas Day over oil, another example of how global events are conveniently timed to dominate headlines and redirect attention. Markets react faster than the public connects dots. On that basis, I loaded up on GTI and TCNNF.

lipmanz

“Jimmy Kimmel unleashed fresh attacks on President Trump, speaking against tyranny in the United States during a Christmas Day address in Britain.The address aired on Channel 4, less than two hours after King Charles III’s annual speech.”……and now Juggies on trampolines! Who is this guy

AfternoonIntrepid

Source data: I. Official Company News Releases (Electra Battery Materials) • Dec 22, 2025: Electra Establishes At-The-Market Offering (ATM) – Details on the $5.5M equity program with H.C. Wainwright. • Nov 10, 2025: Electra Moves Cobalt Refinery Build Forward with Major Construction Tender – Details on the SMPEI tender and construction mobilization. • Oct 22, 2025: Electra Completes Financing and Debt Restructuring – Full details on the US82M funding and US40M debt-to-equity swap. • Sept 12, 2025: Electra Signs Term Sheet with Invest Ontario for C$17.5M – Details on the provincial government's support for the $100M total project. • Aug 19, 2024: Electra Awarded $20 Million from U.S. Department of Defense – Details on the DPA Title III award. • July 24, 2023: Electra Enhances Terms of Cobalt Supply Agreement with LG Energy Solution – Details on the 19,000-tonne, 5-year offtake contract. II. Government & Regulatory Sources • Nov 4, 2025: Government of Canada Budget 2025 – Official announcement of the C$2 billion Critical Minerals Sovereign Fund allowing for equity investments. • Nov 21, 2025: Mining Weekly: Canada Launches C$2bn Critical Minerals Sovereign Fund – Analysis of the fund’s mandate to absorb the Infrastructure Fund and provide equity. • Industrial Base Policy (DoD): DPA Title III Announcements – Confirmation of the $20M award to Electra for sustainable cobalt sulfate production. III. Technical & Recycling Data • Feb 5, 2024: Electra Provides Update on Black Mass Recycling Trial – Results on improved recoveries of lithium, nickel, and cobalt. • Mar 25, 2025: Electra 2024 Annual Financial Reports – Historical context on the cash burn and early-stage bridge financing. IV. Video & Visual Media • Facility Walkthrough: Electra Battery Materials Facility Tour – Direct visual evidence of the brownfield infrastructure and long-lead equipment on site. • CEO Interview: Trent Mell discusses LG Energy Solution Agreement – High-level summary of the 80% production offtake deal.

skyplt29

I appreciate the Marijuana Herald is not known for its accurate accountings...but this does fit with Dr. Oz suggesting Medicare support by April. I will be seeking out a more credible source and will share if I find anything: "President Trump has directed Attorney General Pam Bondi to issue a final ruling on marijuana rescheduling by the end of January, according to two sources close to the president who spoke with The Marijuana Herald. The executive order signed by Trump last week orders AG Bondi to “take all necessary steps to complete the rulemaking process related to rescheduling marijuana to Schedule III of the CSA in the most expeditious manner in accordance with Federal law”. Under federal law, any rescheduling decision must be finalized through DOJ, with coordination from the Department of Health and Human Services (the Department issued their rescheduling recommendation in 2023). Trump’s message to Bondi, as described by the sources, underscores that while the administration intends to follow the legal framework, it also expects a timely outcome rather than prolonged administrative delays. Although Trump ordered Bondi to issue a ruling “by the end of January”, it’s possible a ruling could come early in the month. If DOJ follows through with issuing a final rule on an accelerated timeline by the end of January, marijuana would be officially moved to Schedule III by the spring, a change that would formally acknowledge accepted medical use under federal law and significantly alter how the substance is treated for tax, research, and regulatory purposes. Schedule III status would not legalize marijuana federally, but it would eliminate the punitive tax provision known as 280E, expand opportunities for scientific research, and allow FDA-approved cannabis medicines to be prescribed nationwide (currently only CBD and synthetic THC can be prescribed). The push for a January deadline comes as pressure continues to build from lawmakers, industry stakeholders, and patient advocates who have been awaiting clarity since the rescheduling review began. A final ruling will mark the first change to marijuana’s federal classification since it was placed in Schedule I more than five decades ago. While DOJ has not publicly commented on the timeline, the president’s position suggests the administration wants the matter resolved quickly, setting the stage for a major shift in federal marijuana policy at the start of the year."

Wan4trulove

While I agree that this pump may not have any substance to it, a.k.a administrative procedures can't be rushed as it may give legal headaches later via court orders. That being said , I do believe that DOJ will act in a expeditious manner because Trump is not Biden who will just let it slide, also , HHS seems to be planning some sort CBD initiate to start in Q2 2026. So I believe that final rule is coming at the end of Q1 2026. Also, I don't think final rule comes with FINCEL ruling as DOJ doesn't really care about existing medical programs at state level. SAFER may not be introduced as a Stand alone bill , in all likelihood, congress will push Schedule III banking (without mentioning Cannabis) for state level entities in the 'Fair Access banking act' (Currently in Committee stages in both house and Senate) . This way Republicans can claim it as Law & Order problem and Democrats can claim victory for cannabis industry. Also, Republicans need Democrats support for the legal Gun and Oil companies 'reputational risk' issue to be resolved. So , republicans will get Gun & Oil companies banking discrimination issue resolved and Democrats get their baking for cannabis industry. Finally , If stars do align in our favor and DOJ indeed acts fast on Trump's EO by end of Q1 , the banking will be done at a substantial pace which may become law by end of Q2.

Motorbarge

This is what chatGPT thinks: >As of the **most recent publicly available information**, **Sunshine Biopharma (NASDAQ: SBFM)** does **not currently have any drug candidates in Phase III clinical trials**. In fact, *none of its proprietary drug candidates have entered human clinical testing yet* — they are all still in the **pre-clinical or IND-enabling stages**: and >a substantial portion of insider ownership likely *originated from company-issued equity compensation*. I wouldn't touch this one.

Turgius_Lupus

In the state of Colorado any Employer can terminate you if your use, on the job or off the job of Cannabis violates their drug policy or affects your ability to perform the job. Per a 2016 Colorado Supreme Court Decision. The same statutory language would apply to Codeine with Tylenol which is Secedule III, as well as alcohol. You would probably need some sort of prescription to cover, and yes they do prescribe alcohol in cases of physical dependency Source: I used to work in Unemployment Law

hambone_83

https://www.whitehouse.gov/presidential-actions/2025/12/increasing-medical-marijuana-and-cannabidiol-research/ Sec. 2. Rescheduling Medical Marijuana and Improving Access to Cannabidiol Products. (a) The Attorney General shall take all necessary steps to complete the rulemaking process related to rescheduling marijuana to Schedule III of the CSA in the most expeditious manner in accordance with Federal law, including 21 U.S.C. 811. Doesn’t matter how much they frame it this actual executive order is pretty straight forward and helps all cannabis companies whether rec or med

Trayeboujee

Quick fact checks and things worth reconsidering: 1) Valens isn’t just a “talked about” asset — it’s already integrated and creating real synergies. SNDL completed the Valens acquisition in early 2023, bringing in extraction, processing, and manufacturing capabilities that materially expanded product offerings and lowered cost structures. The combined company generates over $1 B in pro-forma revenue and SNDL has realized annualized cost savings that have already exceeded targets. 2) They’re not sitting on GMP hopes ,they are executing partnerships. SNDL has signed agreements with HYTN for EU-GMP-certified manufacturing and received initial purchase orders under that partnership. HYTN will process EU GMP product for export to regulated markets like the UK, showing SNDL is moving toward standardized pharmaceutical production capacity, not just implying it. HYTN Innovations Inc. 3) They do have a strategic balance sheet , no debt & large cash/investments. As of early 2025, SNDL reported hundreds of millions in cash and marketable securities, zero debt, and ~$1.1 B in net book value. That gives them flexibility to deploy capital, buy back stock, and pursue growth or restructuring opportunities. 4) The U.S. optionality you dismiss isn’t zero , it’s structured differently. SNDL’s SunStream vehicle holds secured positions in U.S. cannabis operators that can convert into equity if federal law changes (e.g., Schedule III rescheduling, which would unlock banking and tax efficiencies). If that catalyst hits, those positions instantly become operating assets with real revenue potential. This is a legally embedded upside, not just narrative fluff. 5) They’re strategically pruning and optimizing operations, not just holding failing assets. SNDL has rationalized its facility footprint, cut costs, improved margins, and is expanding higher-growth segments (e.g., infused products, retail data monetization). These are execution moves toward profitability, not just high-level promises. Yes, SNDL has legacy challenges and the transition isn’t complete ,but facts show they’re actively executing acquisitions, reducing costs, improving cash flow, building GMP partnerships, and holding structured optionality in the U.S.. That’s a lot more than “vague words on a slide.” If you’re bearish because you think nothing is happening behind the scenes, the actual filings and press releases suggest there are operational and strategic catalysts worth examining

FindingZen4

CVNA - You know Ernie Garcia II (the father of CVNA CEO Ernie Garcia III) has a playbook and a history of fraudelent financial dealings right? [https://en.wikipedia.org/wiki/Ernest\_Garcia\_II](https://en.wikipedia.org/wiki/Ernest_Garcia_II)

KAI5ER

Here's a summary why I'm still positive. The key difference this time is that the president has publicly taken ownership of the decision to move cannabis to Schedule III, rather than framing it as a review. By stating the outcome directly, any DEA delay now appears as bureaucratic resistance rather than neutral process. Given Trump’s history of reacting strongly to agencies that undermine or slow-walk his public directives, this creates additional pressure on the DEA to follow through. Obviously .... Schedule III is already supported by HHS science And the DEA is no longer operating in the background, meaning any effort to slow-walk or quietly obstruct the process would be exposed to public and political scrutiny (Cole answers to Trump).

UsedState7381

https://www.newsnationnow.com/politics/trump-marijuana-decision/ >“The president rightfully said, ‘We’re not doing II — II is a half-assed version of III. We’re doing III or we do nothing,’” the business executive said. For anyone still fearing Schedule 2 in here. The president has our back in this, now the fight must be turned towards SAFER Banking...And no bullshit rumours this time, the damned thing MUST be brought to the Senate floor for a vote. 2026 will be a very interesting year for cannabis, even if 2025 is ending on a very sour note for us shareholders. I'm still digesting what the hell really happened last week, and all signs are really pointing towards disgusting MM manipulation. We were robbed of the best day to be invested in cannabis stocks.

Trayeboujee

1. “Most revenue is low-margin retail, grows, and meme rallies” This criticism is fair today — but backward looking. Evidence / facts: Yes, current revenue is still dominated by alcohol retail and legacy cannabis operations. That is exactly why SNDL trades at a depressed valuation. However, SNDL has explicitly stated it is shifting capital allocation away from asset-heavy retail and cultivation toward: services manufacturing structured credit pharma-grade channels Key point: Markets re-rate on future cash flows, not legacy revenue. The DD is not claiming current revenue quality is high. It argues the business model is changing, and the market is still pricing the old one. 2. “Others already have GMP facilities, SNDL is far behind” This is partially incorrect and partially misunderstood. Evidence: SNDL already has access to GMP via HYTN and MediPharm, which is why those names matter. GMP does not need to be owned to be monetized. In pharma, CDMOs (Contract Development & Manufacturing Organizations) routinely trade at high multiples without owning all upstream assets. Tilray and Aurora own GMP facilities, but: They are capital intensive Often underutilized Built for export flower, not scalable pharma manufacturing Key distinction: Owning a GMP building ≠ owning a GMP platform. SNDL’s thesis is standardized, modular, redeployable capacity, not fixed mega-facilities. Asset-light here does not mean “middleman.” It means capital efficiency + redeployability, which matters when demand is uncertain. 2.5. “Name one AI use that makes money today” Fair critique. There is no claim that AI is currently driving material revenue. Correct framing: AI here is a cost, compliance, and scalability enabler, not a revenue line item. Pharma manufacturing requires: batch traceability audit trails real-time quality monitoring AI and automation reduce: compliance costs batch failures labor intensity This is not speculative upside today. It is table stakes for FDA-adjacent manufacturing tomorrow. 3. “Modular grows failed before, Delta 9 proves this” This is where the critique conflates cultivation with manufacturing, and that matters. Evidence-based distinction: Delta 9 used modular systems for cultivation, which is a commodity business. The pods thesis is manufacturing, not growing. Pharma manufacturing is already modular by design (clean rooms, isolated processes, redundancy). Why this matters: Cultivation benefits from scale and sunlight. Manufacturing benefits from: isolation repeatability regulatory containment SNDL is not trying to outgrow greenhouses. They are trying to outmanufacture competitors in regulated products. 4. “SunStream investments look terrible (e.g. Jushi)” This is the strongest bear point — and also the most misunderstood. Evidence: SunStream invested into distressed operators before Schedule III clarity. Those investments were credit-first, not equity-first. Accounting forced SNDL to recognize losses before earnings. Key clarification: SunStream was never about “picking winning MSOs.” It was about: senior secured lending asset control restructuring optionality Private equity often looks wrong before the cycle turns. The test is not Jushi’s current revenue. It is what assets survive and who controls them post-distress. 5. “Why would pharma partner with SNDL?” They would not partner with SNDL today. They would partner when three things are true: Evidence-based prerequisites: GMP-certified manufacturing capacity (via HYTN / MediPharm) Regulatory-grade data, documentation, and DMF readiness Financial stability and long-term commitment SNDL checks: balance sheet credibility regulatory seriousness capital durability Pharma does not care about cannabis brands. They care about compliance, scale, and staying power. 6. “Why $4B if nothing has executed yet?” This is the crux. The DD does not claim $4B is deserved today. It claims: The downside is being priced as permanent The upside is being priced as zero A $4B valuation assumes: partial execution services revenue visibility SunStream drag removal no further balance sheet destruction That is a re-rating thesis, not a victory lap. Why This DD Still Matters Because it asks a different question than most cannabis debates: “What if SNDL is not trying to win cannabis, but trying to own the infrastructure cannabis eventually depends on?” You can disagree with that outcome. But dismissing it as “buzzwords” ignores: capital structure differences regulatory trajectory how pharma and infrastructure companies are actually built That’s why this isn’t pumping. It’s arguing the market may be pricing the wrong business model.

MyNameis_Not_Sure

Nah just priming for the next round. Sched III is done, teasing legalization schemes is on deck for the next decade, enjoy!

No_Regrats_42

I agree with you on everything *except* your view on cannabis(it's what the kids call it now) stocks. The reason being the recent signing into effect, marijuana being rescheduled from Class 1(no possible medical use) to schedule III(a minor federal offense punishable with a possible ticket, but medical applications found and legally can be prescribed) That being said the *cannabis* companies are a dime a dozen. Unless you've been following this in hopes ONE DAY.... It would be decriminalized and pharma would pay the funds necessary to get it distributed widely and have many variations for as many different ailments as possible, where they'd need a prescription from a licensed Doctor who is practicing currently. That subject might be something I've kept on the back burner since around the time I saw it drop, and figured out the WHY behind it. Same as the Internet, same as the housing mortgage rates in 05-06, same as AI in the near future. I will say I didn't think it would ever actually be a profitable sector ever again. I won't divulge when or how long it'll be, but it will be profitable again. Just my personal perspective.

LiberalAspergers

MRNA. Their target cancer vacines are in phase III trials. Thisis what the company was started to do...they have a very real shot at curing most cancers. This could be the biggest medical breakthrough since statins.

AverageNo130

* The Executive Order directs the Attorney General to expedite completion of the process of rescheduling marijuana to Schedule III of the Controlled Substance Act (CSA). * [fact sheet](https://www.whitehouse.gov/fact-sheets/2025/12/fact-sheet-president-donald-j-trump-is-increasing-medical-marijuana-and-cannabidiol-research/)

AmDazed

I did read the article and I believe it said we don't know what mechanism they used. I would say it's more likely that they segregated their business in such a way that they claimed that that portion wasn't barred under 280E. Regardless they defended their claim against 280E successfully at least once already and received a refund. The point is there's already been some success in some way at reducing the 280E liability. As far as the argument after they move to schedule III, for pre 2023 taxes it would be that it was miscategorized as schedule I and rescheduling confirmed this. For 2023 and later it would be that it was declared to have medical value in 2023 by HHS and therefore they shouldn't be held responsible for the bureaucratic delays in rescheduling that directly resulted from that determination. Why they might actually win? The War of Attrition: If dozens of cannabis companies file $100M+ refund suits simultaneously, they create a litigation logjam. The IRS cannot realistically fight 50 high-level 280E cases at once with their current talent pool. The Political Off-Ramp: As more wealthy and politically connected people enter the industry, the political cost of the IRS being aggressive increases. If the administration wants the industry to succeed (to create jobs/tax revenue), they will eventually provide the IRS with an "administrative out" to stop fighting 280E. The Partial win: There are settlements options at the IRS's disposal and "offer-in-compromise" programs that they may allow as a way to avoid litigation. Final argument: Who was there at the signing? Kim Rivers of Trulieve; who has worked with the administration this past year, which included multiple meetings with Trump, to get this EO completed.

randomusername0000

There is a difference. * **Biden basically said:** “HHS and DOJ, please *review* marijuana’s scheduling under existing law.” * **Trump’s EO says:** “DOJ/DEA, *move* it to Schedule III and do it on an expedited timeline Trumps directive specified an outcome and expedition.

NaiveChoiceMaker

First off, cannabis is not rescheduled. “The Order directs the Attorney General to expedite completion of the process of rescheduling marijuana to Schedule III of the Controlled Substance Act (CSA).” Expedite /=/ rescheduled. Also, there is no mention of banking or tax reform. If you listen to Trump’s comments at the signing, he doesn’t think cannabis should be used recreationally at all. I don’t trust this at all.

No_Kangaroo_8713

Here is the time table that Gemini provided me regarding 280e Section 280E applies specifically to "Schedule I and II" substances. The moment the DEA publishes the Final Rule officially moving cannabis to Schedule III, 280E technically ceases to apply. Q1–Q2 2026: DEA rulemaking, public comment periods, and administrative hearings. Late 2026: Potential publication of the Final Rule. 2027 (Spring): The first tax season where companies will likely file without the 280E restriction (for the 2026 fiscal year).

King_Chron

**Trump's Executive Order: What Actually Changed** **The Direct Push:** Trump's order explicitly directs AG Pam Bondi to complete rescheduling in the "most expeditious manner" - legal experts call it a "big push forward" that uses presidential weight to override bureaucratic delays that stalled Biden's 2022 initiative. **Why This Is More Decisive Than Biden's Approach:** * Biden (2022): Launched multi-agency review dependent on HHS/DEA cooperation - criticized for slow pace * Trump (2025): Direct mandate to finalize existing proposal, treating it as priority vs. continued "study" * Biden-era process stalled by mandatory hearings (originally Jan 2025) and 43,000 public comments creating procedural pauses **Policy Framing Shift:** Trump frames it as "common sense" backed by 82% public support, explicitly stating "facts compel federal government to recognize marijuana can be legitimate for medical applications" - removing the federal position that cannabis has no accepted medical use. Unlike Biden's broader "equity" focus, includes targeted programs like Medicare pilot reimbursing seniors up to $500 annually for CBD (starts April 2026). **Immediate Industry Impact:** * **Taxation**: Schedule III eliminates IRS 280E penalty preventing state-legal businesses from deducting expenses (rent, payroll) * **Banking/Investment**: Expected to push Nasdaq/NYSE to reconsider listing U.S. cannabis companies and advance SAFER Banking Act **Bottom Line:** Order strategically timed for immediate financial relief and uses executive pressure to clear bureaucratic backlog.

King_Chron

\- **Trump's Executive Order: What Actually Changed** **The Direct Push:** Trump's order explicitly directs AG Pam Bondi to complete rescheduling in the "most expeditious manner" - legal experts call it a "big push forward" that uses presidential weight to override bureaucratic delays that stalled Biden's 2022 initiative. **Why This Is More Decisive Than Biden's Approach:** * Biden (2022): Launched multi-agency review dependent on HHS/DEA cooperation - criticized for slow pace * Trump (2025): Direct mandate to finalize existing proposal, treating it as priority vs. continued "study" * Biden-era process stalled by mandatory hearings (originally Jan 2025) and 43,000 public comments creating procedural pauses **Policy Framing Shift:** Trump frames it as "common sense" backed by 82% public support, explicitly stating "facts compel federal government to recognize marijuana can be legitimate for medical applications" - removing the federal position that cannabis has no accepted medical use. Unlike Biden's broader "equity" focus, includes targeted programs like Medicare pilot reimbursing seniors up to $500 annually for CBD (starts April 2026). **Immediate Industry Impact:** * **Taxation**: Schedule III eliminates IRS 280E penalty preventing state-legal businesses from deducting expenses (rent, payroll) * **Banking/Investment**: Expected to push Nasdaq/NYSE to reconsider listing U.S. cannabis companies and advance SAFER Banking Act **Bottom Line:** Order strategically timed for immediate financial relief and uses executive pressure to clear bureaucratic backlog.

luvs2splwge

Fair question. Different layers of the stack. POET is more about optical engine integration and packaging. Aeluma’s core differentiation is III-V materials grown directly on 200–300mm silicon at the wafer level. That makes them more upstream and more platform-like, but also earlier and more execution-sensitive. I’m watching Aeluma specifically for the manufacturing unlock rather than module-level wins.

skyplt29

Quad witching, Nike slides, weed rules and more in Morning Squawk Published Fri, Dec 19 20257:36 AM EST Leslie Josephs@lesliejosephs WATCH LIVE Key Points Friday could be a wild day on Wall Street with four types of options expiring on the same day, a four-times-year occurrence known as “quadruple witching” day.Nike shares were down sharply in premarket trading after the sportswear giant warned sales would slide this quarter.President Trump signed an executive order to reclassify cannabis out of Schedule I — alongside heroin and LSD — to a Schedule III classification.

Draphippo

I think they just understand the true values of these companies post Sch III and what’s to come. This isn’t speculation anymore, this is a long term investment.

AmDazed

I think people are confusing GTI being conservative with them not having a 280E play. It is true that Ben Kovler pays the taxes in cash so they don't owe the IRS. That is exactly why they don't have the massive debt that Trulieve has. But saying they don't have uncertain tax positions is just wrong. Check their 2024 10-K in Note 11 (page F-40). They literally have a line for $76.8 million in unrecognized tax benefits. That is the uncertain tax position. They paid the cash, but they flagged it on the books so they can go after the refund later. Also check their 2023 10-K, it was there too at $66.5 million. In 2024 alone they paid $130.6M in income taxes , which is nearly double their GAAP net income of $73.1M for the year. It seams by keeping those unrecognized tax benefits on the books while paying under protest, they are basically giving the IRS an interest-free loan that they will claw back the second Schedule III is official.

LooseButtPlug

*Specifically, it reads, “The Attorney General shall take all necessary steps to complete the rulemaking process related to rescheduling marijuana to Schedule III of the CSA in the most expeditious manner in accordance with Federal law.”*

Sick0h

Trade Wars: Episode III - Revenge of Nagasaki

Real-Name-7840

Based on the Executive Order signed today (December 18, 2025), here is how the move to Schedule III will specifically impact your business’s bottom line and banking options. ​1. Tax Deductions (The "Big Win") ​This is the most immediate and financially significant impact of the reclassification. ​The End of 280E: Under Schedule I, cannabis businesses were subject to Internal Revenue Code Section 280E, which prohibited deducting standard business expenses (rent, payroll, marketing, insurance). You were taxed on gross profit, often leading to effective tax rates of 70% or more. ​The Schedule III Difference: Schedule III substances are exempt from 280E. Once the rule becomes effective (estimated Q1 2026), cannabis businesses will be treated like any other US business for tax purposes. ​Financial Impact: You will be able to write off all "ordinary and necessary" business expenses. ​Result: Your effective federal tax rate will likely drop to the standard corporate rate (approx. 21%), instantly freeing up massive amounts of cash flow. ​Crucial Note on Timing: This change is generally not retroactive. You will likely still owe 280E taxes for the 2025 tax year. The relief typically applies to the tax year in which the rule becomes effective (i.e., tax year 2026). ​2. Banking Access (The "Partial Win") ​While tax relief is guaranteed by the letter of the law, banking improvements are more complicated. Schedule III is not a silver bullet for banking, but it helps. ​The Problem: Major national banks (Chase, BofA, etc.) generally refuse to touch cannabis money because strict Anti-Money Laundering (AML) laws flag it as "criminal trafficking." ​Does Schedule III Fix It? Technically, no. Because recreational cannabis is not FDA-approved, it is still technically a "controlled substance" being sold outside of federal compliance. ​However: It significantly lowers the "risk profile." Smaller regional banks and credit unions—who were previously terrified of losing their charters for banking a Schedule I drug—may now feel safe enough to enter the market. ​The Real Fix (SAFER Banking Act): Full access to major institutional banking, credit cards, and low-interest business loans still depends on Congress passing the SAFER Banking Act. ​Current Status: With the President’s Executive Order today, pressure is now on Congress to pass SAFER Banking in 2026 to "harmonize" the banking laws with the new Schedule III status.

AmDazed

It's not about the IRS "erasing" what they already have; it's about the billions they haven't collected yet. The top MSOs like $TCNNF and $GTBIF are currently carrying massive "Uncertain Tax Positions" on their balance sheets—this is cash they’ve set aside but haven't actually paid to the IRS while they challenge 280E. Once Schedule III is final, those liabilities can be reversed, instantly padding the bottom line. Plus, Trulieve already proved it's possible—they actually got $113M in physical refund checks from the IRS for 2019-2021 by filing "protective claims." Rescheduling makes those claims 10x stronger. The IRS isn't being "nice"; they're being forced to follow a tax code that legally can't apply to Schedule III drugs.

AmDazed

It's not about the IRS "erasing" what they already have; it's about the billions they haven't collected yet. The top MSOs like $TCNNF and $GTBIF are currently carrying massive "Uncertain Tax Positions" on their balance sheets—this is cash they’ve set aside but haven't actually paid to the IRS while they challenge 280E. Once Schedule III is final, those liabilities can be reversed, instantly padding the bottom line. Plus, Trulieve already proved it's possible—they actually got $113M in physical refund checks from the IRS for 2019-2021 by filing "protective claims." Rescheduling makes those claims 10x stronger. The IRS isn't being "nice"; they're being forced to follow a tax code that legally can't apply to Schedule III drugs.

AmDazed

30 days max from when Bondi signs off. 280e only effect schedule I and II, not III.

Tiaan

The main reason why we're dropping so hard is that rescheduling has not actually happened yet. The media is acting like it's already done with headlines "EO to reschedule cannabis" and the administration is acting like it's already done with language like how significant this is, etc, similar to what the Biden admin did where they acted like they actually changed marijuana laws without actually finalizing rescheduling Executive orders are legally binding within the executive branch. This was Trump's order to the AG in the EO: > The Attorney General shall take all necessary steps to complete the rulemaking process related to rescheduling marijuana to Schedule III of the CSA in the most expeditious manner in accordance with Federal law, including 21 U.S.C. 811. While its hugely positive that this EO indicates rescheduling will happen, the language doesn't provide any definite timeline and "rulemaking" specifically can take months or longer. Everyone who is taking this as "wow I guess rescheduling wasn't that significant or impactful" is also acting like it's been finalized, which it hasn't. I'm hoping the final rule will be issued within the next 6 months but I despise this sector so god damn much and just want it all to end already

SwordfishOk504

lol. you guys really do live in a fantasy world. "The Attorney General shall take all necessary steps to complete the rule-making process related to rescheduling marijuana to Schedule III."

tstrand1204

People saying congress has to do this and EO is meaningless are flat wrong. The EO directed the DOJ to get it done. That’s who needs to get it done. This was always what the EO was going to say. If it said “Marijuana is now schedule III” that would have been meaningless

TripleSmokedBacon

Only in the sense that under schedule III patients with recognized conditions as apply to cannabis / cannabinoid therapy could receive medical exemptions... however, very unlikely for heavy industry, law enforcement, health care providers (on the job), and the usual high-risk jobs where 100% unimpaired judgement is a mandatory condition for work.

BasedBasophil

So why the run up? The expected order was “get schedule III done” and that’s what we got no?

volckerwasright

Here's the order to Bondi: "The Attorney General shall take all necessary steps to complete the rulemaking process related to rescheduling marijuana to Schedule III of the CSA in the most expeditious manner in accordance with Federal law, including 21 U.S.C. 811."

volckerwasright

"The Attorney General shall take all necessary steps to complete the rulemaking process related to rescheduling marijuana to Schedule III of the CSA in the most expeditious manner in accordance with Federal law, including 21 U.S.C. 811."

TripleSmokedBacon

A lot of people will want to call Schedule III “huge news for cannabis.” It isn’t. At least not for MSOs. Rescheduling does not elevate state cannabis into federal legitimacy. It does the opposite: it exposes how incompatible most state operations are with federal drug law. Schedule III substances are regulated by the DEA, and products are regulated by the FDA for quality, purity, safety, and manufacturing controls. That means prescription-grade products, cGMP, validated processes, traceability, pharmacovigilance, the whole pharma framework. Physicians are not going to prescribe state-market cannabis products. Those products do not meet FDA standards, and most MSO facilities operate in direct contradiction to cGMP and established pharma models. Retrofitting many of them would be harder and more expensive than building compliant greenfield facilities from scratch. Even the “best” MSOs are usually nowhere near EU or Canadian GACP/cGMP expectations. This move does not reward rule-breaking with entry into the federal system. The DEA does not work that way. Pharma does not work that way. Porous market access is not tolerated. What Schedule III really does is set the table for federally legitimate, pharmaceutical-grade cannabis products. That benefits companies that already know how to operate in regulated drug environments. It does not magically legitimize state-licensed volume producers. Next steps are predictable: DEA adopts the policy and publishes the framework. A federally compliant pathway emerges. State markets continue to exist in parallel, but they are not the same thing. Source: I work in this space at a regulatory and policy level. This is not your MSO payday.

dave-alexander

As disappointing as the initial price reaction is, good things are yet to come! A lot of people are confused by today’s price action, so here’s a level-headed take. Yes the Executive Order was signed. Yes Schedule III is effectively locked in via federal directive. And yes CBD was explicitly addressed with CMS/FDA involvement (including Medicare pilot authority). So why the sell-off? This is classic “anticipation → confirmation → digestion.” Markets ran hard into the event, and short-term traders sold into the headline. Leveraged products (MSOX especially) exaggerate this move. That doesn’t mean the news failed — it means the market is repricing what actually changed. What actually changed (and matters long-term): • 280E is effectively dead → immediate EBITDA & cash flow improvement • Federal cannabis risk profile dropped permanently (Schedule I → III path) • CBD now has explicit federal legitimacy (FDA + CMS direction) • Institutional modeling must be redone (this doesn’t happen in one session) • SAFE Banking becomes politically easier, not harder Today wasn’t “the end event.” It was confirmation of a regulatory regime shift — and those never move in straight lines. If this were truly bearish, MSOS wouldn’t still be massively up from last week, and analysts wouldn’t be scrambling to update assumptions. This is digestion, not rejection. Big changes get priced over weeks and months, not one trading day. Stay grounded. This setup is structurally better than it was 48 hours ago — even if the tape doesn’t look pretty yet.

Cool_Ad_5101

I will take a stab at it. What are your GOALS? (R)Isk tolerance, (R)eturn. Figure that out, and then ask whats your (T)imeline, (L)iquidity needs and do you have any (L)egal or(U)nique circumstances? This is classic CFA level III portfolio construction questions. That said, I believe in this industry and am long Greenthumb, Trulieve and Cresco Labs. Was long tilray from 2016- 2024 but think Irwin and the CEO or Greedy cunts that are extracting as much wealth from the shareholders. So I am not a fan. There are others here that love them. Ask yourself why YOU sold Tilray? If you don't need the money, want to be part of the industry growth I would buy Greenthumb and maybe some trulieve. These are the top MSO's. I would also, buy only as much as you are comfortable holding a while and DON'T overweight your portfolio if you don't have conviction. Again, this isn't financial advice but, hopefully it gives you something to think about. There are some really good opinions on this board, hopefully they pipe in.

skyplt29

# Cresco Labs CEO: Rescheduling Marks Historic Shift for Cannabis Industry December 18, 2025 * [Download(opens in new window)](https://s202.q4cdn.com/903809940/files/doc_news/Cresco-Labs-CEO-Rescheduling-Marks-Historic-Shift-for-Cannabis-Industry-2025.pdf) CHICAGO--(BUSINESS WIRE)-- Cresco Labs Inc. (CSE: CL) (OTCQX: CRLBF) (FSE: 6CQ) (“Cresco Labs” or the “Company”), today issued a statement on behalf of Cresco Labs CEO Charlie Bachtell following President Trump’s action to reschedule cannabis from a Schedule I to Schedule III substance under the Controlled Substances Act. *“Today marks the most consequential moment in the history of U.S. cannabis. The decision to move cannabis from Schedule I to Schedule III will be a cultural turning point, acknowledging what millions of Americans already know: cannabis is medicine and deserves responsible, common-sense regulation.* *This action starts bridging the gap between federal law and the will of the American people, with nearly 90 percent of Americans supporting some form of cannabis legalization and 74 percent already living in states with legal cannabis. Rescheduling unlocks opportunities for comprehensive medical research. It validates the work of state leaders who pioneered thoughtful, highly regulated cannabis programs for their constituents. It sends a strong message to our criminal justice system to stop imprisoning people for a plant that’s been used as medicine for more than 5,000 years.* *For the estimated 450,000 people working in the regulated cannabis industry, rescheduling is the first domino to fall, paving the way for cannabis to be normalized, respected and finally treated like any other U.S. industry. It will remove cannabis companies’ unfair tax burden, allowing operators to reinvest in new infrastructure and job growth in the communities we serve.* *It also lays essential groundwork for progress on banking reform and access to U.S. capital markets, critical steps toward aligning federal policy with the scale and sophistication of this industry.* *We commend President Trump for this action and remain committed to building the responsible, respectable and robust cannabis industry this country deserves.”*

Napster-mp3

Duh…was the rumor the whole time. Just rescheduled to a III

ComprehensiveKiwi489

learnaboutsam twitter President Trump intends to finalize the Biden-era rule to reschedule marijuana from Schedule I to III. Read SAM President and CEO Dr. Kevin Sabet’s statement. “This rule, if finalized, will herald a public health disaster."

KAI5ER

Once the executive order is signed, it does not immediately reschedule cannabis but formally directs the DOJ and DEA to finish the process. The Attorney General transmits that order to the DEA, which then completes final rulemaking. Because public comments are already done, HHS has already recommended Schedule III, and OIRA review has already occurred, the DEA’s remaining step is largely administrative. It publishes a final rule in the Federal Register and sets an effective date, typically 30 to 60 days later. When that date hits, cannabis officially moves to Schedule III, triggering the real impact, including the end of 280E tax penalties, federal recognition of medical use, and easier access to research, with broader banking, institutional investment, and uplisting effects beginning to unfold afterward.

randomusername0000

The dump is artificial, this is what's mentioned in the briefing before the signing today. * Direct the attorney general to expedite the completion of the process of rescheduling marijuana to Schedule III of the CSA. * Direct top White House staff to work with Congress to give patients access to full-spectrum CBD products, “while still restricting the sale and access to products that cause serious and potentially life threatening health risks.” * Urge Congress to examine updating the definition of hemp to ensure that full-spectrum CBD is accessible to patients—a policy change that could mitigate some concerns in the sector about a recent spending bill Trump signed with provisions that would broadly ban consumable hemp products. * Direct the U.S. Department of Health and Human Services (HHS) to “develop research methods and models, to utilize real world evidence \[and\] to improve access to hemp-derived CBD products in accordance with federal law” while informing “standards of care.”

Cool_Ad_5101

Wow, just read the highlights thanks u/randomusername0000 and went to marijuana moment for more information. Seems very bullish. I wonder why people clearly don't see this as bullish. Trump actually said: **Direct the attorney general to expedite the completion of the process of rescheduling marijuana to Schedule III of the CSA.** this is pretty good

-eShTuPiD

Grabbed some YCBD on the dip. Pretty sure they will move the drug to schedule III. I heard reports of verdict was leaked but I don't see a definitive answer. Let's ride this up to $3

randomusername0000

If you want to sell, sell. But here's what were getting today. Which is huge. * **Direct the attorney general to expedite the completion of the process of rescheduling marijuana to Schedule III of the CSA.** * Direct top White House staff to work with Congress to give patients access to full-spectrum CBD products, “while still restricting the sale and access to products that cause serious and potentially life threatening health risks.” * Urge Congress to examine updating the definition of hemp to ensure that full-spectrum CBD is accessible to patients—a policy change that could mitigate some concerns in the sector about a recent spending bill Trump signed with provisions that would broadly ban consumable hemp products. * Direct the U.S. Department of Health and Human Services (HHS) to “develop research methods and models, to utilize real world evidence \[and\] to improve access to hemp-derived CBD products in accordance with federal law” while informing “standards of care.”

randomusername0000

Nope. Happening, includes all of this but rumor is doesn't mention anything about safe banking, which he has no control over, that's on congress. Take it as it is, I'm happy AF about it. * Direct the attorney general to expedite the completion of the process of rescheduling marijuana to Schedule III of the CSA. * Direct top White House staff to work with Congress to give patients access to full-spectrum CBD products, “while still restricting the sale and access to products that cause serious and potentially life threatening health risks.” * Urge Congress to examine updating the definition of hemp to ensure that full-spectrum CBD is accessible to patients—a policy change that could mitigate some concerns in the sector about a recent spending bill Trump signed with provisions that would broadly ban consumable hemp products. * Direct the U.S. Department of Health and Human Services (HHS) to “develop research methods and models, to utilize real world evidence \[and\] to improve access to hemp-derived CBD products in accordance with federal law” while informing “standards of care.”

pepega9669

Disagree with your conclusion. You are making it seem like putting weed in a truck that used to carry beers previously is physically impossible. Like everything, scaling production bigger leads to higher margins. But no one has scaled their weed farms like TLRY has. They had to overcome a massive mould issue (that others haven’t yet overcome). TLDR; barring the tariff across the border, TLRY is best suited for making use of Sch III change in the US. They are already by far the biggest medical player in Europe. They will be so for the US.

Tiaan

> Direct the attorney general to expedite the completion of the process of rescheduling marijuana to Schedule III of the CSA. This is all that Trump can do via EO regarding rescheduling. Anyone who told you otherwise was lying to you

UsedState7381

EO leaked on Marijuana Moment. Details: Orders the AG to finalize the rescheduling process to schedule 3. No details on Safe Banking, no details on Uplisting. >Direct the attorney general to expedite the completion of the process of rescheduling marijuana to Schedule III of the CSA. >Direct top White House staff to work with Congress to give patients access to full-spectrum CBD products, “while still restricting the sale and access to products that cause serious and potentially life threatening health risks.” >Urge Congress to examine updating the definition of hemp to ensure that full-spectrum CBD is accessible to patients—a policy change that could mitigate some concerns in the sector about a recent spending bill Trump signed with provisions that would broadly ban consumable hemp products. >Direct the U.S. Department of Health and Human Services (HHS) to “develop research methods and models, to utilize real world evidence [and] to improve access to hemp-derived CBD products in accordance with federal law” while informing “standards of care.” >Separate from Trump’s order, Mehmet Oz, administrator for the Centers for Medicare & Medicaid Services (CMS), will also be announcing “a model that will allow a number of CMS beneficiaries to benefit from receiving CBD under doctor recommendation at no cost,” the White House official said. Not everything about the EO has been leaked, but I would NOT assume it's much beyond this. Brace for dips.

volckerwasright

MMoment - Here are new details about Trump’s executive order on cannabis: Direct the attorney general to expedite the completion of the process of rescheduling marijuana to Schedule III of the CSA. Direct top White House staff to work with Congress to give patients access to full-spectrum CBD products, “while still restricting the sale and access to products that cause serious and potentially life threatening health risks.” Urge Congress to examine updating the definition of hemp to ensure that full-spectrum CBD is accessible to patients—a policy change that could mitigate some concerns in the sector about a recent spending bill Trump signed with provisions that would broadly ban consumable hemp products. Direct the U.S. Department of Health and Human Services (HHS) to “develop research methods and models, to utilize real world evidence [and] to improve access to hemp-derived CBD products in accordance with federal law” while informing “standards of care.”

Potential_Koala1487

YCBD. Trump is speaking to they, expected to make a decision to reclassify cannabis from Schedule I to Schedule III. This is huge for the potential catalyst for the nearly $40 billion legal cannabis industry.

derprondo

I haven't seen anyone talking about this, but be moving to schedule III they make it so the FDA can choose the winners and losers here, correct? In other words, if big pharma wants to control the cannabis market, this will let them. You'll only be able to buy weed from the companies the FDA chooses.

Own_Fold_5212

“More than 20 Republican senators are urging President Donald Trump to keep marijuana classified as a Schedule I drug as his administration is expected to reclassify it to a Schedule III drug on Thursday.” Never forget - while Trump is likely making this happen, GOP opposition is a real threat. TX, PA, FL - the big ones. And look at the VA difference with the governor change. Also Ohio push back on the voter driven effort. SAFER post S3 and any agency reforms not dependent on congress are still extremely feasible with the current house.

1_FCKTRD

The administration is already telling Senator Tim Scott to get safe banking out of committee and attach it to the next bill up for a vote. Today's executive order will direct Attorney General Pam Bondi to complete the necessary government paperwork to reschedule cannabis as a Class III drug. The signed executive order will be interpreted by large institutional investors as a green light to invest. Although some investors may still be prohibited from buying due to internal rules regarding over-the-counter (OTC) transactions. A low-cost market-cap index fund created by a reputable firm like Fidelity or Vanguard would be a great way to get rid of MSOS. I've been looking forward to this day ever since I started investing in cannabis stocks back in 2017. Cannabis is going to start trending and so will irrational exuberance.

itemg

I’m investing in MSOX and very excited about the upcoming EO. I’d like to ask some long-time members for their thoughts. Most of MSOX’s major holdings (also MSOS) have a net loss.  Therefore, the tax benefits from Rescheduling III won’t significantly boost their net income.  Furthermore, most US states already approve medical cannabis use, and also needed FDA for new medicines. So the demand from the approval of the medical use does not seems to become substantially higher with Rescheduling III. Despite all the conditions looked similar in 2021, MSOS and its component companies saw a remarkable increase in share price. So, I’m curious about what I am missing, and what will drive cannabis companies’ earnings higher and consequently their values if Rescheduling III occurs.

SPAC_Time

[Factorial and Cartesian Growth Corporation III (Nasdaq: CGCT) Announce Business Combination Agreement to Accelerate Commercialization of Solid-State Battery Technology](https://www.businesswire.com/news/home/20251218768916/en/Factorial-and-Cartesian-Growth-Corporation-III-Nasdaq-CGCT-Announce-Business-Combination-Agreement-to-Accelerate-Commercialization-of-Solid-State-Battery-Technology) \- CGCT CGCTW [Investor Presentation](https://www.sec.gov/Archives/edgar/data/2049662/000110465925122322/tm2533742d1_ex99-2.htm) "CGC and Factorial have agreed to apply good faith efforts **to seek support and approval of the significant holders of the CGC Public Warrants to amend the warrant agreement to provide for the conversion of each CGC Public Warrant into shares of CGC Class A Share as promptly as possible at a ratio and time to be determined based on negotiations with and approval of such holders.** At or prior to the Closing, CGC shall cause the CGC Private Warrant Exchange Agreement to be executed to provide that each CGC Private Warrant will convert into CGC Class A Shares at the same exchange ratio as the CGC Public Warrants are exchanged pursuant to the warrant agreement amendment."

itemg

I’m investing in MSOX and very excited about the upcoming EO. I’d like to ask some long-time members for their thoughts. Most of MSOX’s major holdings (also MSOS) have a net loss.  Therefore, the tax benefits from Rescheduling III won’t significantly boost their net income.  Furthermore, most US states already approve medical cannabis use, and also needed FDA for new medicines. So the demand from the approval of the medical use does not seems to become substantially higher with Rescheduling III. Despite all the conditions looked similar in 2021, MSOS and its component companies saw a remarkable increase in share price. So, I’m curious about what I am missing, and what will drive cannabis companies’ earnings higher and consequently their values if Rescheduling III occurs.

Calm_Evening_4534

1. The Bomb: The 2008 "DTA" Legacy During the 2008 financial crisis, Citi lost tens of billions of dollars. In the world of accounting, a loss isn't just "gone"—it creates a Net Operating Loss (NOL). Citi was allowed to keep these losses on their books as Deferred Tax Assets (DTAs), essentially a promise from the government: "Whenever you eventually make money again, you don't have to pay taxes until you've used up these old losses."  • The Problem: As of late 2025, Citi is still carrying roughly $25–$28 billion in these tax assets. • The "Regulatory Weight": Regulators (under Basel III) hate DTAs because you can't use a "tax promise" to pay back depositors during a bank run. Therefore, if the DTA gets too big relative to the bank's actual cash (Equity), regulators force the bank to deduct it from their capital. 2. The Fuse: The Credit Card Portfolio Citi is one of the world’s largest credit card issuers. This is their "high-yield" engine, but it’s also the most sensitive to economic heat. • The Burn Rate: Currently, Citi’s credit card loss rates are "normal" (around 3.5%–4.0%).  • The Heat: If unemployment (U-6) spikes to 9% or 10%, that "burn rate" accelerates. This is the fuse. As long as the economy is cool, the fuse just smolders. But if defaults jump toward 8% or 10%, the fuse starts racing toward the main charge. 3. The Detonator: The "Valuation Allowance" (Note 9) This is the mechanical link that turns a "bad year" into a "blown-up bank." Accounting rules (ASC 740) state that if a company thinks it is "more likely than not" that they won't be profitable enough to use their DTAs, they must trigger a Valuation Allowance.  The Detonation Sequence: 1. Stage 1: 20% of credit card users default (The Fuse reaches the end). Or PE unravels, or some other black swan event takes place. 2. Stage 2: Citi reports a massive $30B quarterly loss. 3. Stage 3 (The Detonator): Because of that massive loss, accountants are forced to say, "We clearly aren't profitable right now, so we must write down the value of our $28B in DTAs." 4. Stage 4 (The Explosion): Citi takes a non-cash charge to "Note 9." This doesn't just lower earnings; it vaporizes regulatory capital (CET1). 4. Why the Bomb Destroys the Stock When that DTA "detonator" goes off, Citi’s Common Equity Tier 1 (CET1) ratio—their ultimate safety metric—would likely plummet from 13.2% to below 8% in a single day. • Automatic Halts: At that level, the Fed legally must stop Citi from paying dividends or buying back shares. • The "Death Spiral": The market sees the capital hole and realizes Citi needs to raise cash. But no one wants to buy stock in a failing bank, so the stock price collapses from $111 toward $30 strike price as investors flee. • Insolvency: If the write-down is big enough, the bank becomes "technically insolvent," meaning its liabilities outweigh its actual usable capital.

King_Chron

**SNDL Inc – Long-Term Bull Thesis (3–7 yrs) | NASDAQ: SNDL** * Market Cap: \~$536M | Cash: \~$178M | Debt: $0 | FCF 2025: \~$35–40M, projected $50M+ (2026) * Canadian ops: liquor (Ace Liquor, Liquor Depot, Wine & Beyond) + cannabis retail (Spiritleaf → Value Buds) + cannabis cultivation/production → stable cash flow * U.S. optionality via SunStream USA: \~$260M convertible debt → equity in FL, TX, MI, MA, NM → Top-5 North American MSO potential if federal legalization (Schedule III) occurs * 2025 revenue: $723M USD; Gross Margin \~26%; owner earnings \~$40–45M * Valuation: DCF & SOTP suggest $4–6/share vs current \~$2.10 → \~2–3x upside * Catalysts: U.S. federal rescheduling (removes 280E), SunStream conversions, Canadian consolidation, margin expansion via Indiva/private-label products * Capital Allocation: share buybacks $120–150M, Canadian tuck-ins $40–80M, U.S. roll-up via SunStream $150–300M **Bottom Line:** FCF-positive, cash-rich, undervalued Canadian retailer with embedded U.S. MSO optionality → asymmetric 3–7 yr upside.

Ok_Ground9015

Probably declaring World War III before the Epstein files are released.

Tripstrr

Rules on companies under $1b in valuation so it limits pump and dumps. Been there for way too long. And honestly, until this schedule III ruling, these have been pump and dumps.

Ok_Foot2530

Why so pessimistic? If you believe S&P won’t be up much because it’s too expensive (like the Internet bubble / EM bull runs you talked about), then wait until it’s cheaper. If you believe US companies in S&P will not generate good ROE or grow as much as before, you are losing faith in US exceptionalism - then some country (countries) must be replacing US leadership role, then diversify and allocate. If neither if above - then you are predicting WW III for value destructive for the entire world? Then, my man - god bless us. But I will just live assuming the 3rd scenario won’t happen - if it does, money doesn’t matter as much any way….

215bareback

Robot Unicorn Attack III

BridgeShoddy

Theres still more to that process, youre right u can ask gpt timing and process. DEA issues final rule announcing Schedule III placement. Effective date is usually specified 30–90 days after the final rule’s publication. Realistically, from order to legal change could take several months to a year or more. Administrative rulemaking isn’t instantaneous even when agencies are directed to act.

noobstockinvestor

NEW: President Trump is expected to sign an EO to reclassify marijuana from a Schedule I to a Schedule III drug on THURSDAY, sources tell me and While this is planned for Thursday, senior official warns that timing could always shift.

thupkt

Hopefully watch Cannabis be rescheduled to III at 9 PM EST

thupkt

Options: Reschedule cannabis to Schedule III Declare war on Venezuela Declare war on Fentanyl Tell everyone he is the greatest My money is on rescheduling cannabis and my bets are placed accordingly. MSOS up a tidy 20%+ today

tstrand1204

Trump will be "teasing some policy to come in the new year." I could see him addressing the fentanyl EO, crackdown on illegal drugs, then say he'll be signing an EO to reschedule marijuana to schedule III to allow research into medical benefits, etc...

memelackey

Nah III was pretty cool. Boats were fun

tstrand1204

Not great that Kovler mixed up Schedule I and Schedule III during the whole interview

Gambelero

Not sure there will be an executive order. All he needs to say is “I directed the DOJ and DEA to restart the process of moving cannabis to schedule III.” He can do that with a post on Truth Social, announce it during a briefing, or even just say it during one of the daily press gaggles.

Cabrim

I've been questioning the valuation (as a foreign business), but...still one of the largest autonomous trucking plays in Europe, and warrants only 50~ cents. I'll find out eventually if it's mistake. >Einride and Legato Merger Corp. III Announce Confidential Submission of Draft Registration Statement on Form F-4 https://www.prnewswire.com/news-releases/einride-and-legato-merger-corp-iii-announce-confidential-submission-of-draft-registration-statement-on-form-f-4-302642191.html

BasedBasophil

Yeah it’s irritating and honestly corrupt, par for the course with Trump- use power to grift and make money. Clearly weed should be schedule III, that ruling has been delayed by the DEA for some time now. All they have to do is leak news that the ruling is coming- big spike up by insider buying while retail can’t do anything. Then they just hold off on giving the official word, and a sell off happens. But only they know when the actual verdict is coming. As opposed to just making the shit happen, official schedule III, companies taxed fairly, uplisting to exchanges. Then we could invest based on more predictable long term fundamentals rather than being at the whims of a pump and dump. It’s rigged.

Sharp-Direction-6894

Trump is expected to sign an executive order on Monday reclassifying weed from schedule I to schedule III.

MoonManBigFish

Our Father, Hail Mary, and Glory Be TLRY, VFF, CGC Short squeeze of a lifetime! Trump to sign executive order as soon as Monday to change cannabis from Schedule 1 to Schedule 3 Relief from Federal Tax Burden (IRC Section 280E) This is one of the most immediate and significant changes for state-legal cannabis businesses: • Tax Deduction: Moving to Schedule III would lift Internal Revenue Code Section 280E, which currently prevents businesses dealing in Schedule I or II substances from deducting standard operating expenses (like rent, payroll, and utilities) on their federal taxes.  • Financial Benefit: This change would dramatically lower the effective federal tax rate for many cannabis operators, potentially increasing their profit margins by a substantial amount (some estimates suggest a 70-90% increase in the bottom line). This relief could help state-legal businesses better compete with the illicit market.  2. Boost to Medical Research Rescheduling would likely simplify and encourage scientific study of cannabis:  • Reduced Requirements: Research on Schedule III substances is generally subject to less burdensome requirements from the DEA compared to Schedule I substances, making it easier for scientists to obtain and study cannabis.  • Medical Acceptance: The move officially acknowledges that cannabis has a currently accepted medical use and is less dangerous than Schedule I substances (which include heroin and LSD).  3. Impact on Healthcare and Stigma • Prescribing: While rescheduling doesn't automatically approve cannabis as a federal medicine, it could make it more practical for mainstream physicians to prescribe cannabis products, especially in states with medical marijuana programs.  • Reduced Stigma: It could help reduce the stigma faced by medical cannabis patients in areas like child custody cases, employment, and access to housing or medical treatments.  4. Criminal Justice and Legal Status (Limited Change) It is crucial to understand what the change would not do: • Still Federally Illegal: Reclassification would not federally legalize cannabis for recreational or general medical use. Cannabis would remain a federally controlled substance, meaning its unauthorized manufacture, distribution, and possession would still be illegal under the Controlled Substances Act.  • Federal Prosecution: Federal criminal penalties for Schedule III substances can be less severe than for Schedule I, but the core issue of state-legal cannabis businesses violating federal law remains. State and local marijuana laws would not be preempted.  5. Potential Industry Changes • Banking Access: While not a complete fix, the shift could encourage more banks and financial institutions to work with cannabis businesses, potentially improving access to financial services.

AverageNo130

"Industry leaders largely agree on one point: rescheduling marijuana to Schedule III would be historic — but it is not legalization. Without additional reforms addressing banking, insurance, FDA pathways, and federal enforcement, cannabis businesses and patients remain caught in a complex and uncertain legal landscape." marijuana herald 12/12 ..."The advisor, who told The Marijuana Herald over the summer that Trump intended both to reschedule cannabis and create a separate commission to examine full descheduling, said today that the second phase of that plan is still moving forward. According to the advisor, the administration expects to formally announce the commission by summer, ahead of the 2026 midterm elections, with preliminary work well underway behind the scenes."

Methodill

The image you sent appears to be a screenshot of a Reddit post, likely from the r/pennystocks subreddit, discussing a potential executive order (EO) related to marijuana rescheduling and CBD coverage, speculating on its impact on the "Cannabis-Industrial Complex." As of today, December 14, 2025, here is an assessment of the key claims mentioned in the post: 🔍 Marijuana Rescheduling Status The claim that "Trump marijuana rescheduling" is expected "Monday" or that he will "sign this EO" is highly speculative and based on rumors unless a specific official announcement has been made very recently, which is not confirmed as a fact. * The Process: Marijuana rescheduling is a complex, multi-agency process, not typically decided by a single Executive Order (EO) from the President alone. * In 2023, the Department of Health and Human Services (HHS) recommended that the Drug Enforcement Administration (DEA) move marijuana from Schedule I to Schedule III of the Controlled Substances Act (CSA). * The DEA is the final authority to decide whether to reschedule the drug after reviewing the HHS recommendation and conducting its own scientific and legal review. This process is time-consuming and its exact timeline is unknown. * The Claim: A post suggesting a market-moving event like this is set to happen on a specific "Monday" without citing a reliable source should be treated as speculation, especially when posted on a penny stock forum, which is known for hype. 🌿 CBD Coverage The post also mentions "CBD coverage." * CBD Status: Cannabidiol (CBD) derived from hemp (cannabis with less than 0.3\% THC) was federally legalized under the 2018 Farm Bill. * Coverage: However, there is still significant regulatory uncertainty regarding CBD's use in food, beverages, and dietary supplements, as the Food and Drug Administration (FDA) has not fully established a clear regulatory pathway. "Coverage" (likely referring to insurance or broader market acceptance) would be indirectly affected by the FDA's eventual actions, which are separate from the DEA's rescheduling process. 💼 Impact on the Cannabis Industry The post claims this action would "set in motion a cascade of follow-on catalysts." * Rescheduling Impact: Moving marijuana to Schedule III would be a massive change. * It would mainly impact taxation, making cannabis businesses eligible for normal business tax deductions (as they would no longer be subject to the IRS's Section 280E rule). This would significantly boost profitability. * It would also reduce some federal penalties and potentially open the door for more scientific research. * Profitability Barrier: The post correctly identifies that legislative/regulatory uncertainty (especially regarding interstate commerce, banking, and 280E taxation) has been a primary barrier to industry profitability. Rescheduling to Schedule III would solve the tax issue, which is a major profitability hurdle. 🎯 Conclusion The core claim that marijuana rescheduling would be a "HUGE symbolic effect" that addresses the industry's "primary barrier to growth and profitability" (280E taxes) is analytically sound. However, the specific timeframe and the notion of a President signing a definitive "EO" to complete the rescheduling on a given day are unverified and highly suspect hype. In summary, treat the post as: * True on the premise: Rescheduling to Schedule III would be a massive positive catalyst for the industry. * False/Unverified on the specifics: There is no confirmed, reliable information that a final rescheduling EO will be signed on "Monday" or that the process is complete. Would you like me to look up any official statements or news from the DEA regarding the status of marijuana rescheduling?

uj7895

Is the mention of an EO moving cannabis to schedule III what’s blowing up the cannabis stocks? $YCBD was crazy on Friday.

DrHarrisonLawrence

If cannabis is descheduled to Schedule III, hundreds of billions of dollars will flood into the medical industry nationwide. It’s gonna be ridiculous lol

DrHarrisonLawrence

It will also allow medical cannabis to be legalized federally. Schedule III substances are allowed to be prescribed medicinally and researched in federally funded initiatives.

SwordfishOk504

not a fact at all lol. The Biden administration began the formal administrative process to potentially reschedule marijuana from a Schedule I to a Schedule III drug under the Controlled Substances Act (CSA) in October 2022. That process is not something the WH controls. It was with the DEA. Cry all you want, *those* are the facts. Your dumb partisan games have no bearing on the realities of the market.

HamiltonFFinanc

If Trump really moves cannabis from Schedule I to III, that’s a structural shift, not just a headline. Losing 280E could flip a lot of companies from unprofitable to viable, unlocking cash flow and valuations. We still need official action, but the strong market reaction makes sense

halfbeerhalfhuman

>Other Schedule III drugs include Tylenol hehe

D1rtD3mon

Is the 2nd green rush starting now that mango wants to make it a schedule III?

BassHead808dp

Ernie III doesn't own drivetime, his dad does, Ernie II.

ComprehensiveKiwi489

Moving from Schedule I to schedule III is not legalization. You still need various licenses to operate in states, with some states being much harder to get into. The mom and pop companies cannot compete with the huge companies, and big alcohol and tobacco can't get involved directly yet because of compliance issues from being a publicly traded company and selling a scheduled substance (even if it's schedule III).

EndlessSummerburn

Schedule III? Xanax is schedule IV. You’re telling me Benzos have a lower abuse potential than THC? The entire scheduling system sucks and needs to be reworked from the ground up.