Freaky Friday Potpourri
Recapping a historic week in Cannaland.
Recent Recap
We finish up the final frame of this five-session set to find the U.S. cannabis complex exhaling after a historic week. Trulieve uplisted to the NYSE and others, including Curaleaf, Vireo, and Verano, are getting ready to join them at the show.
While most U.S. operators will wait for the ALJ AU hearing to finish in a month before slapping on their tux and tails, the seal has been broken, the migration has begun—and if BoJo is correct, we could also see federal tax guidance in the coming weeks.
IDK the precise timing of any of that but I do know everything we fingered two years ago—before DJT’s Labor Day Tweet in 2024—set the stage for his promises made to become promises kept, aligning with the industry’s milestones into the midterms.
Was or is it as fast as any of us would have liked? Nope—but that doesn’t diminish the significance or scope, particularly with a potential for MMJ 280 back-tax vacation, the possibility of international exports, and the eradication of intoxicating hemp 👇.
Small sample set but note the impact on regulated cannabis sales after intoxicating hemp was 86’d. THC growth has bee gangbusters for a decade, albeit bifurcated. As of November, there will be a single, regulated channel for safe and tested cannabis.
The recipe for the next cannabis bull remains the same as we laid out in January:
Growth, which will ✅ as the hemp loophole closes and new states flip.
Regulatory parity: will ✅ when S3 hits + halo effect (custody, banking, et al).
Uncertain tax provisions (UTPs): will ✅ via settlement, litigation, or both.
Keep your head on a swivel, think positive, and remember who you are—and if you believe in cosmic energy and paying it forward, my pal Scotto had his surgery today as he battles pancreatic cancer. Any support would be massively appreciated.🙏
Chart Check: MSOS
The U.S. cannabis ETF tried to chew through the April high but was sucked toward the $5 strike ahead of next week’s expiration. Volumes remain thin and news-dependent but news is coming, this we know.
Hit it!
As the industry readies to head to Chicago next week, the market will be operating on an abbreviated schedule given Friday is Juneteenth, U.S exchanges will be closed, and June’s expiration will take place on Thursday—but don’t tell the algos.
Come meet Mission [Green] Founder Weldon Angelos at Ascend River North
Top Stories
Nationwide Legal Canna Sales Reach $2.48B In May, $11.5B In 2026
Trulieve’s NYSE Listing Is A ”Landmark Milestone”, This Analyst Says
The US Cannabis Sector Is Nearing a Major Event
Ohio Consumers Can’t Get Enough Of This Cannabis Product
New York Cannabis Regulators Win Three Key Market Protections
Missouri Marijuana Sales Reach Record Highs In May
Texas Rule Targeting Smokable Hemp Is Back In Effect, But Enforcement Unclear
The Inside Story Of The World’s First Cannabis-Based Painkiller
European Drug Report 2026: A More Complex And Powerful Cannabis Market
Industry Headlines
Cannabis MSO Verano in uplisting wave with reverse stock split
Village Farms Welcomes Christopher “Kip” Woodward as Board Chairman
Village Farms Launches Pure Sunfarms Pink Kush Cured Resin Vape
C21 Investments Reports Q4/FYE Financial Results
Glass House Brands Announces Filing of Shelf Prospectus and ATM Program
Trulieve President Jason Pernell Resigns, Announces Separation Agreement
Kim Rivers on CNBC talking about the historic uplist
Village Farms CEO and USAF Capt. Mike DeGiglio (ret.) on Village Farms.
ATB on Village Farms: Catalysts at Doorstep; Still Trading at a Steep Discount
We recently met with VFF management, including CEO Mike DeGiglio and SVP Corporate Affairs Sam Gibbons. We came away increasingly constructive on VFF’s ability to capitalize on international growth opportunities, with clear catalysts to provide another step change in revenue beginning in 2H26 and through 2027.
Yesterday’s regulatory approval for its Netherlands expansion allows VFF to 5x capacity to 10 metric tons (10,000 kg), which we believe could translate to US$65M+ in annual revenue, assuming a full ramp (expected early 2027) and enough demand within the pilot program (currently just ~80 coffee shops in 10 localities). The ramp-up of the second half of its Delta 2 facility is also expected to begin contributing this summer and will increase capacity by 33% once fully ramped by end of 2027.
These catalysts should help drive profitable sales growth along with cash flow.
Despite working capital impacting cash flow in 1Q, we still anticipate healthy cash flow for the company and estimate that VFF is still trading at a low double-digit 2026 FCF yield.
With VFF offering an attractive FCF yield and trading at just 4.5x our 2027 EBITDA estimate, we view the stock as undervalued given VFF has step-change revenue catalysts beginning in 3Q as it continues to leverage its position as a leading low-cost, quality, cultivator. with rescheduling presenting the potential for the company to leverage that capability in the US. Reiterate Buy rating at $5 PT.
AGP on Verano Holdings
Verano remains BUY rated on a new 12-month price target of C$25.00 following its 1-for-5 reverse stock split (reflecting our pre-split C$ pt), effective June 11, 2026.
Consistent with similar announcements across the MSO landscape, Verano’s management cited U.S. exchange uplisting as the primary driver for the consolidation, signaling management’s conviction on the regulatory trajectory for later this summer.
The consolidation reduces Verano’s shares outstanding from approximately 365.1M to roughly 73.0M.
ATB on Trulieve
Trulieve began trading on the NYSE under the symbol TRLV, becoming the first US cannabis operator listed on a major US exchange. While the recent restructuring (completed to facility the uplisting) reduces absolute GAAP revenue and margin dollars, we expect the strong medical market economics to continue driving top-tier GAAP profitability with gross margins bracketing 65%.
Ultimately, we believe the listing enhances liquidity and institutional access, lowering Trulieve’s cost of capital and supporting a higher valuation. We have reduced our discount rate to 11% (from 12%), raised our exit EV/EBITDA multiple to 12x (from 10x), and now value Harvest separately at 3.0x 2027e EV/Sales.
These adjustments drive our Price Target to US$15.00 (from C$18.00), reflecting the transition to USD denomination, and maintain our Outperform rating.
Stems & Seeds
Cannabis Medicine for Back Pain Aims to Displace Opioids
Father’s Day Gift Guide: Perfect Presents for Cannabis-Loving Dads
Have a safe journey, please enjoy responsibly.
If you’d like to help Mission [Green] change federal cannabis policies, please click here.
CB1 has positions in/ advises some of the companies mentioned and nothing contained herein should be considered advice.