This Is How Marijuana Stock Investors Will Make Money In 2026The cannabis industry is in another pivotal time where consistent changes are being made. Laws and regulations have been passed across the country that have aided in the further development of industry. For most marijuana stock investors, this is the area where shareholders tend to focus. Investors know that a company is doing well, or is working towards a significant goal, which can all lead to profitability. There are different sectors and marke ...

Group 1: Company Overview - SNDL Inc. operates in the Canadian adult-use cannabis market with a diversified business model that includes Liquor Retail, Cannabis Retail, Cannabis Operations, and Investments, allowing it to balance performance across segments [1] - The company is involved in the production, distribution, and sale of cannabis products, providing exposure to multiple parts of the value chain [1] Group 2: Recent Acquisitions - On January 8, SNDL completed the acquisition of five 1CM cannabis retail locations in Alberta and Saskatchewan, marking the first closing under its amended agreement with 1CM Inc. [2] - This acquisition is part of a larger plan to add 27 Ontario-based stores, which are pending regulatory approvals [2] - An amended agreement with 1CM Inc. was announced on December 15, 2025, to acquire 32 cannabis retail stores for a total cash consideration of $32.2 million, structured into two closings to meet regulatory requirements [3] Group 3: Financial Performance - In Q3 2025, SNDL reported a record quarterly free cash flow of $16.7 million and a positive cumulative free cash flow of $7.7 million for the first nine months of the year [4] - Net revenue increased by 3.1% year over year to $244 million, driven by strength in the Cannabis segment, which helped offset challenges in the Liquor Retail business [4] - These results indicate improving cash generation and resilience despite broader market headwinds [4]

Core Insights - President Trump's executive order to reschedule cannabis to Schedule 3 is considered a significant shift in federal cannabis policy, potentially alleviating the burdensome tax regime affecting U.S. cannabis operators for decades [1][2]. Tax Implications - The executive order could lead to the elimination of Section 280E of the Internal Revenue Code, which currently taxes legal cannabis operators as if they were narcotics traffickers, preventing them from deducting any business expenses [2][3]. - Rescheduling cannabis to Schedule 3 would allow U.S. companies to deduct standard operating costs, significantly improving their financial health and cash flow [3]. Market Reaction - The cannabis industry is responding positively to the news, especially after a strong performance in 2025, where the AdvisorShares MSOS ETF outperformed the S&P 500 [4]. - Despite the optimistic outlook, the sector is still viewed as highly volatile, with many institutional investors remaining cautious due to past political inaction [4]. Remaining Challenges - Even with the potential rescheduling, U.S. cannabis companies still face hurdles, such as the inability to list on major exchanges like NASDAQ or NYSE, which is available to Canadian companies [5]. - The industry is also awaiting "safe harbor" provisions for banking, which remain unresolved [5]. Stock Performance - Recent performance data for cannabis stocks and ETFs shows varied results, with AdvisorShares Pure U.S. Cannabis ETF (NYSE:MSOS) leading with a 68.55% increase over six months, while other companies like Tilray Brands Inc. (NASDAQ:TLRY) and Canopy Growth Corp. (NASDAQ:CGC) show mixed performance [7].

Industry Overview - The cannabis sector is experiencing growth despite historical volatility, with expectations for significant developments by 2026 that could benefit shareholders [1][2] - Recent legislative changes in the U.S., including the reversal of the 2018 farm bill and an executive order to reschedule cannabis, have sparked speculation about the future profitability for legal operators [2] Company Highlights - **Cronos Group Inc.**: Engages in the cultivation, production, distribution, and marketing of cannabis products internationally. Recently entered the Netherlands market by acquiring CanAdelaar B.V., the largest cannabis company in the Netherlands, which is seen as a strategic move to expand its footprint in Europe [3][4][5] - **Aurora Cannabis Inc.**: Focuses on the production and distribution of cannabis products. The company has made significant advancements in disease resistance research, moving from research to production trials of cultivars with verified PM2 resistance [6][7][8] - **SNDL Inc.**: Engages in the production and sale of cannabis products for the adult-use market in Canada. Recently received approval for a share repurchase program, allowing the company to repurchase up to C$100 million of its outstanding common shares [9][10]

Group 1 - SNDL Inc. has completed the acquisition of 5 cannabis retail stores located in Alberta and Saskatchewan from 1CM Inc. [1] - This transaction marks the first closing under the amended and restated arrangement agreement dated December 15, 2025, with a second closing anticipated in the first half of 2026 for 27 additional stores in Ontario, pending regulatory approvals [2] - SNDL is one of the largest vertically integrated cannabis companies in Canada and the largest private-sector liquor and cannabis retailer, with various retail banners and consumer-facing cannabis brands [3] Group 2 - 1CM Inc. operates as a retailer of cannabis and liquor in Canada, focusing on developing cash-flow positive locations and pursuing growth through organic development and mergers and acquisitions [4]

Group 1 - Pomerantz LLP is investigating claims on behalf of investors of SNDL Inc. regarding potential securities fraud or unlawful business practices by the company and its officers/directors [1] - On December 15, 2025, SNDL announced an amendment to its agreement to acquire 32 cannabis retail stores from 1CM, maintaining a total purchase price of $32.2 million in cash, but splitting the acquisition into two closings for regulatory approval [2] - Following the announcement of the amended acquisition agreement, SNDL's stock price fell by $0.29 per share, or 13.12%, closing at $1.92 per share on December 15, 2025 [3]

Core Viewpoint - Pomerantz LLP is investigating potential securities fraud or unlawful business practices involving SNDL Inc. and its officers or directors [1] Group 1: Company Developments - On December 15, 2025, SNDL announced an amendment to its agreement to acquire 32 cannabis retail stores from 1CM Inc., maintaining a total purchase price of $32.2 million in cash, but splitting the acquisition into two closings for regulatory approval [3] - Following the announcement of the amended agreement, SNDL's stock price decreased by $0.29 per share, or 13.12%, closing at $1.92 per share on the same day [3]

Core Viewpoint - President Donald Trump's executive order marks a significant shift in federal cannabis policy, directing federal agencies to loosen regulations on marijuana [1] Regulatory Changes - The order instructs U.S. Attorney General Pam Bondi to expedite the rescheduling of marijuana to Schedule III under the Controlled Substances Act, aligning it with common painkillers but not fully legalizing it [2] - Marijuana's current classification as a Schedule I substance has limited research opportunities, and reclassification aims to enhance studies on safety and effectiveness, particularly for vulnerable populations [4] Access to CBD Products - The order outlines steps to improve access to hemp-derived cannabinoid products, especially cannabidiol (CBD), which currently lacks a clear regulatory pathway through the FDA [5] - It directs the White House Deputy Chief of Staff to collaborate with Congress to expand access to full-spectrum CBD products while restricting those posing health risks [6] Political Reactions - Senate Minority Leader Chuck Schumer supports the order, viewing it as a positive step, but emphasizes the need for further decriminalization and easing banking regulations for the cannabis industry [7] - Conversely, some Republican senators, including Ted Budd, criticize the order as shortsighted and potentially harmful to youth [7][8] Market Reactions - Cannabis stocks initially surged following the announcement but retreated by the close, attributed to the lack of expected cannabis banking provisions in the order [9] - Despite the retreat, major cannabis stocks have seen significant gains throughout the month in anticipation of the executive order [11]

Core Viewpoint - SNDL shares experienced a nearly 12% increase following reports of a potential reclassification of cannabis as a "Schedule III" drug by the Trump administration, which may also allow seniors access to cannabis products under Medicare coverage [1][2]. Company Developments - SNDL stock has shown volatility, currently down over 25% from its year-to-date high in early October despite recent gains [2]. - The company has agreed to acquire 32 cannabis retail stores from 1CM in Canada, which could enhance its market share as it expands its retail footprint in key provinces like Ontario, Alberta, and Saskatchewan [3][4]. - SNDL reported a record $16.7 million in free cash flow for Q3, positioning the company well for growth initiatives in the upcoming year [4]. Market Position and Valuation - SNDL shares are currently trading at a price-sales multiple of less than 1x, indicating an inexpensive valuation relative to the long-term potential of the cannabis industry [5]. - The recent rally has pushed SNDL shares above $2, reducing the delisting risk that had previously affected the stock [5]. - Options traders anticipate a more than 20% increase in SNDL shares by January 16, suggesting a potential trading price of $2.53 in early 2026 [6]. Analyst Outlook - Wall Street analysts project that SNDL stock could more than double in value over the next year, driven by favorable policy changes [7].

Core Points - SNDL Inc. and 1CM Inc. have entered into an amended and restated arrangement agreement to acquire 32 cannabis retail stores for a total purchase price of $32.2 million in cash [1][3] Group 1: Transaction Details - The transaction will be completed in two stages: the first closing will involve 5 stores in Alberta and Saskatchewan, while the second closing will involve 27 stores in Ontario [2] - The purchase price for the first closing is set at $5.0 million, and for the second closing at $27.2 million, with the total purchase price remaining unchanged [3] - The deadline for completing the transaction has been extended from December 31, 2025, to May 31, 2026 [2] Group 2: Shareholder and Court Approvals - 1CM's shareholders voted overwhelmingly in favor of the transaction, and a final court order was obtained on June 18, 2025 [4] - A court hearing is scheduled for January 5, 2026, to seek approval for the amendments to the transaction [4] Group 3: Financial Implications - 1CM plans to return a portion of the net proceeds from the transaction to its shareholders after the second closing [5] - The net proceeds from the first closing are expected to cover transaction costs and working capital [5] Group 4: Company Backgrounds - SNDL Inc. is one of the largest vertically integrated cannabis companies in Canada, with a diverse portfolio of retail brands and products [6] - 1CM Inc. operates cannabis and liquor retail locations and aims to continue expanding through organic growth and future mergers and acquisitions [7]