News about cannabis

The author calls the Innovative Industrial Properties Series A Cumulative Redeemable Preferred Stock (IIPR-PA) the best cannabis stock for dividend investors. IIPR is a REIT that owns 108 properties in 19 states and leases them to licensed U.S. cannabis operators under long-term triple-net leases. The common stock's 14.5% forward yield is seen as unsustainable given a payout ratio of about 172% and insufficient free cash flow, while the preferred yields about 9.3% and its cumulative feature requires missed preferred dividends to be paid before common dividends resume. Key risks include tenants failing to pay rent and heavy reliance on a small group of its 37 tenants for half of rental revenue. The author sees it as suited to aggressive income investors rather than conservative ones.

Last December, President Trump signed Executive Order 14370 to speed up the rescheduling of marijuana to Schedule III, lifting Canopy Growth shares from $1.15 to nearly $2 before they gave back those gains. On Sept. 29, DEA Chief Administrative Judge Derek C. Julius stayed the rescheduling process pending a briefing on a GAO report, and after the DEA's Oct. 9 response he granted another stay so opposing parties could reply. The article argues that Canopy's larger challenges are the Canadian recreational market, persistent operating losses, and the risk of further dilution through its $200 million at-the-market equity program, which calls its $300 million valuation into question.

Moving marijuana from Schedule I to Schedule III is being delayed by a Government Accountability Office report, as opponents seek to add the report, more testimony and documents to the administrative record. The DEA does not object to including the report, but the additional requests could postpone a final decision. For Green Thumb Industries (GTBIF), rescheduling could remove the federal tax burden under Section 280E, which bars deductions for ordinary operating expenses. Even so, the company generated $29 million in operating cash flow in Q2 2026, with revenue of $306.7 million, normalized EBITDA of $84.3 million and net income of $4.9 million. Q2 gross margin fell to 45% from 49.9% a year earlier, while the company repurchased about 29.5 million shares for $203.4 million.