President Trump announced historic changes in federal cannabis policy:
- Directs the Attorney General to complete the rulemaking to move marijuana from Schedule I to Schedule III under the Controlled Substances Act.
- Anchors the action to the 2023 HHS recommendation, recognizing accepted medical use.
- Emphasizes expedited completion within existing law.
- Explicitly acknowledges that medical marijuana has accepted medical uses.
- Cites FDA findings supporting use for pain, nausea and vomiting, and anorexia related to medical conditions.
- Prioritizes expansion of medical marijuana research.
Paradoxically, the cannabis stock market was down sharply on the news. The chart below shows the percentage increase in prices during the week ended 12/12/25 (blue bars), the percent decline from 12/12/25 to 12/18/25 (red bars), and the resulting net gain over the period (green bars). Note that despite today’s sharp reversal, all stocks except Jushi are up over the full period.
But why the sharp reversal today on ostensibly the best news cannabis has had in many years?
- One explanation can be summarized by the old Wall Street adage, “Buy on the Rumor, Sell on the News.” The rescheduling announcement had been priced in over the last week, and there was little surprise when it finally happened. Retail traders may have been anxious to harvest the only significant gains they had seen in their cannabis portfolios.
- Today’s announcement did not reschedule cannabis. There was no final rule. Instead, he instructed Bondi to proceed as rapidly as feasible toward rescheduling. Observers who expected a final ruling may have been disappointed.
- There had been several rumors circulating that the executive order would include provisions on SAFE banking, but it did not.
- Finally, the positive comments directed toward hemp-based cannabinoids may have thrown a life raft to the hemp industry, and that may be unpopular in some legal cannabis circles.
We believe that further price gains may occur as the timing and details of the process become clearer.
To See More of Our Analysis on Cannabis Company and Sector Valuations Click on Our Viridian Valuation Tracker
About Viridian Capital Advisors
Since launching in 2014, Viridian Capital Advisors has become one of the most respected and experienced advisory and M&A firms specializing in the cannabis industry. We provide a wide range of services, including:
- Strategic Advisory Consulting: Including valuation, financial modeling, restructuring and fairness opinions.
- Mergers & Acquisitions: Transaction advisory and execution.
- Capital Raises: Including debt and equity.
Many of our assignments begin with a basic question: “What should I do now?”
- Raise capital to expand? What kind of capital is most appropriate?
- Acquire another company? What are the advantages and pitfalls?
- Sell my company? What valuations can i achieve? What transaction structures are possible?
Put our experience, data and depth of senior talent behind your next transaction.
Contact
Scott Greiper
CEO
Viridian Capital Advisors, LLC
646.330.0704
sgreiper@viridianca.com
Frank Colombo
Managing Director
Viridian Capital Advisors, LLC
914.523.4730
fcolombo@viridianca.com
Broker-Dealer Services Provided Through Bradley Woods & Co. Ltd. – A Member of FINRA and SIPC, 845 Third Avenue, Suite 1703, New York, N.Y. 10022
