You are reading this week’s edition of New Cannabis Ventures, a weekly magazine we have published since October 2015. The newsletter includes unique insight to help our readers stay ahead of the curve, as well as links to the most important news of the week. We no longer email them like we used to, but post this and all newsletters on our website here.
friends,
Canadian LP stocks have been quite strong this year. I’ll provide an update on the November action on Friday, but the NCV Canadian Cannabis LP Index ended today at 59.32, leaving the 13-stock index up 18.4% in 2025. Some readers may attribute the demonstration to Village Farms, but Village Farms is not on the NDAASQ index for that reason alone. Village Farms is on the NCV Global Cannabis Stock Index, which is down 11.1% year-to-date. It is also in MSOS, which is down 10.0% so far in 2025.
I’ve written very optimistically about some of the Canadian LPs over the past few years, and very negatively about others. Newsletter articles on Canadian LPs over the past eighteen months include:
It’s been a little over three months since Canadian LPs have been the focus of this newsletter, and I want to provide an update today as we head into the end of the year, with these stocks outperforming the hemp sector. At 420 Investor, I include 5 Canadian LPs in my 19-stock Focus List, including Canopy Growth, Cronos Group, Organigram, Tilray Brands, and Village Farms. These are all in the Global Cannabis Stock Index, along with Aurora Cannabis and SNDL. Here’s how they’ve performed since 8/8, the day before news of a possible US move broke:
Here are my current thoughts on each.
Canopy growth. it was unpleasant, but all that dilution fixed their balance sheet. I don’t see the stock, which is down 56.0% in 2025, as attractive, and I remain concerned about their US operations being held as an investment rather than as part of their operations (to maintain a NASDAQ listing).
Cronos Group. I’m not much of a fan of it, other than the huge cash and such a large majority ownership by Altria. That said, it makes up 6.7% of my model portfolio at 420 Investor, despite being the strongest LP of the five, up 23.0% year-to-date.
Organigram. I like the balance and the valuation seems about right. What matters is that their actions were strong. This week, the company announced a new CEO, who will take over in mid-January. I don’t know much about him, but he spent two decades at British American Tobacco, which owns a lot of OGI. The stock has pulled back a lot and is down 0.6% in 2025. I include it in my model portfolio at 11.9%.
Tilray Brands. I am not a fan of this company at all and they have zero involvement in the US state regulated cannabis market. I thought they were bullshitting the MedMen and I’m glad their investment was completely written off. The latest ban on hemp products, which will take effect next year, undermines the efforts they’ve been making with THC drinks. I really liked it when it was under $1 earlier this year, as I expressed here, but now I don’t care. The stock will reverse split after the close on Monday. I don’t have a problem with this at all, but many investors don’t like reverse splits. TLRY closed at $1.03 but announced a reverse split after the close. Compared to last year, it decreased by 21.8%.
Village farmers. I loved it earlier this year, and I loved it when they made their big move in May to divest themselves of their produce business. The stock is very much up (418.2% year-to-date in my opinion) and not widely followed by Wall Street. The company didn’t provide any guidance, but analysts’ estimates look really high. I think many are excited about their potential win in the Texas medical cannabis market, which is in the process of expanding from 3 licensed producers to 15, with news from VFF on 12/1. This Texas is excited about program changes and producer expansion, but I’m still not excited about the potential financial impact that could eat into cash and not be recognized on the income statement. Note that MSOS has acquired a position (in the summer ahead of news of a possible realignment). The ETF currently has 3.5 million shares, a position of 2.2 percent of the ETF, although it sold 2 percent of its holdings when it hit redemption last week.
I write a lot about Canadian LPs on Seeking Alpha, and you always can look at my articles more details there. This past weekend I upgraded my rating on Organigram from Hold to Buy and downgraded my rating on Village Farms from Sell to Strong Sell. Last week I upgraded Canopy Growth from Strong Sell to Hold after being very negative for quite some time. In late September, I downgraded Tilray Brands to Strong Sell. That one rallied sharply a few days later on their Q1 report, but failed. In mid-September, I initiated coverage of SNDL via selling. At 420 Investor, I include 5 Canadian LPs in my Focus List, including Canopy Growth, Cronos Group, Organigram, Tilray Brands, and Village Farms.
Canadian LPs are doing better than most other sectors. I’ve written positively about hemp REITs, and they seem like a better bet to me. I think investors should be careful with Canadian LPs as they are no longer as cheap as they used to be and have been buoyed by enthusiasm for MSOs since the potential realignment was announced in August, although the realignment will not affect them. I hope there are improvements in Canadian taxation, distribution and regulation, as these changes can help LPs. Until then, I suggest caution.
I wish everyone a Happy Thanksgiving.
Sincerely,
Alan:
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Based in Houston, Alan leverages his experience as an online community founder 420 Investorthe first and still the largest due diligence platform focused on publicly traded stocks in the cannabis industry. With his extensive network in the cannabis community, Alan continues to find new ways to connect the industry and facilitate its sustainable growth. time New Cannabis Ventureshe is responsible for content development and strategic alliances. Before turning his attention to the cannabis industry in early 2013, Alan, who began his career on Wall Street in 1986, worked as an independent research analyst with more than two decades of research and portfolio management experience. A prolific writer, with over 650 articles published since 2007 Looking for Alphawhere he has 70,000 followers, Alan is a frequent speaker at industry conferences and frequent source Media including the NY Times, Wall Street Journal, Fox Business and Bloomberg TV. Contact Alan. Twitter: |: Facebook |: LinkedIn: |: El
Cronos will enter the Netherlands by acquiring Europe’s largest adult cannabis company
Cronos will acquire CanAdelaar for $67.0 million in cash1: plus cash proceeds of 0.5x normalized EBITDA in 2026 and 2027
The preliminary valuation represents approximately 1.4x CanAdelaar LTM revenue and 2.4x LTM EBITDA2:
Will give Cronos #1 market share3: Europe’s largest adult cannabis marketplace
Enables a borderless product strategy, investing in genetics, research and development and product development
TORONTO, December 9, 2025 (GLOBE NEWSWIRE) — Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) (“Cronos” or the “Company”), a global innovative cannabinoid company, is pleased to announce that its wholly-owned subsidiary has entered into a definitive share purchase agreement (the “Purchase Agreement”) to acquire a majority stake in BVC (CanAdela).3: operates as part of the Dutch Cannabis Experiment for Adults (“VietExperiment”). Under the purchase agreement, CanAdelaar shares will be acquired for an upfront consideration of €57.5 million or US$67.0 million,1 subject to certain customary adjustments, with an additional contingent consideration to be paid in cash based on CanAdelaar’s normalized EBITDA of 0.5 in 2026 and 2027.
“Our acquisition of CanAdelaar is a financially impactful and highly strategic transaction that will establish a strategic footprint in Europe and enable us to leverage our investments in Infinite Products,” said Cronos chairman, president and CEO Mike Gorenstein. “The Netherlands has a deep cannabis heritage and its cafes are known around the world for playing a fundamental role in the evolution of the legal cannabis industry. European expansion is an important area of focus for us, and we were particularly keen to see the Netherlands legislate and create a responsible and well-functioning Dutch hemp production market. regulators, cafes, adult consumers and all stakeholders to ensure the continued success of Wietexperiment, CanAdelaar’s management team quickly and efficiently developed the business in the adult cannabis market.
About Wietexperiment
The Netherlands’ adult cannabis pilot program, the Wietexperiment, went into effect in 2020 to create a closed, regulated cannabis supply chain in ten participating communities. The initial phase began in the fourth quarter of 2023, and the pilot phase will officially begin on April 7, 2025. The program is set to run for four years from that date, with the Dutch government retaining the option to extend it for up to an additional 18 months.
According to the Wietexperiment, all 72 coffee shops (cannabis retailers) in the ten participating communities can no longer operate in the “tolerable” market and must source their cannabis products exclusively from one of the ten licensed producers (including CanAdelaar). The framework prohibits the import and export of cannabis products, sales between licensed producers and any supply to cafes outside of participating municipalities.
About CanAdelaar
Founded in 2018, CanAdelaar received its license under Wietexperiment in Q2 2023. CanAdelaar is headquartered and operates out of Voorne aan Zee in the Netherlands in a 540,000 square foot facility that includes greenhouse processing and processing of all Candea products. With active sales at nearly all 72 Wietechperiment cafes, CanAdelaar sells flower, pre-rolls, hash and edibles under CanAdelaar Original Grow, or “COG.”
CanAdelaar highlights
Current cultivation yields approximately 20,000 kg of dried flowers per year.4:
The only industrial-scale greenhouse cultivator at Wietexperiment, with other licensed producers operating indoor growing facilities.
Wietexperiment leading market share.5:00
Sales began in the fourth quarter of 2023, with revenue growing to $17.7 million in 2024 and $47.3 million in the twelve months ending September 30, 2025.6:00
EBITDA of $8.0 million in 2024 and $28.2 million for the twelve months ended September 30, 2025.7:00
Strategic rationale
The transaction is expected to provide multiple strategic and financial benefits that will further position Cronos as a leading global cannabinoid company, including:
Activating the Infinite Product Strategy. the deal provides another opportunity to showcase Cronos’ investment in cannabis genetics, research and product development. While more than 75% of CanAdelaar’s LTM revenue came from the sale of cannabis flower,8 o’clock A number of product categories besides flower have been legalized under the Wietexperiment, including certain edibles, vapes, pre-rolls and hash. We expect to use the borderless product strategy that has made us the market leader in Israel and Canada to provide both proven and innovative new products to meet the needs of Dutch adult cannabis consumers.
Competitive positioning and concerted action. CanAdelaar has the highest market share9:00 Within Wietexperiment and among ten licensed manufacturers, is the only industrial-scale greenhouse developer, providing a cost advantage and a differentiated value proposition.
Mandatory financial description. Initial settlement of $67.0 million10:00 representing approximately 1.4x LTM revenue and 2.4x LTM EBITDA.11:00
As a result of the potential expansion of the Dutch cannabis program for adults. Wietexperiment has fully legalized the sale of cannabis to adults in only ten Dutch municipalities (including Amsterdam), covering 72 of the 562 cafes in the Netherlands.12:00 If the Wietexperiment eventually expands to additional communities or across the country, it could provide a significant growth opportunity for the target market.
Thoughtful regulatory regulation to promote responsible use by adults; The Wietexperiment is well-designed and regulated, with levels responsible for restricting cannabis use only among adult consumers, serving as a potential model for other countries. We are committed to Wietexperiment’s continuity and collaboration with regulators, municipalities and all industry stakeholders to ensure its long-term success.
Transaction Overview and Timing
Pursuant to the terms of the Purchase Agreement, the cash consideration to be paid in cash at the closing of the Transaction is EUR 57.5 million or USD 67.0 million.13:00 subject to certain customary adjustments. In addition, the contingent consideration is paid in cash equal to 0.5x CanAdelaar’s 2026 normalized EBITDA and 0.5x CanAdelaar’s 2027 normalized EBITDA.
The transaction has been approved by the Company’s Board of Directors and is expected to close in early 2026. The transaction remains subject to customary closing conditions, including the completion of required regulatory approvals in the Netherlands.
An investor presentation providing additional details regarding the Transaction has been posted on Cronos’ website under Investor Relations.
About Kronos
Cronos is an innovative global cannabinoid company committed to creating disruptive intellectual property by advancing cannabis research, technology and product development. With a passion for responsibly enhancing the consumer experience, Cronos is building an iconic brand portfolio. Cronos’ diverse international brand portfolio includes Spinach®, PEACE NATURALS® and Lord Jones®. For more information about Cronos and its brands, visit: thecronosgroup.com.
1: Based on EUR/USD exchange rate of 1.165 as of December 5, 2025, source: Factset. 2: LTM: twelve months ended September 30, 2025; CanAdelaar’s revenue and EBITDA are provided by CanAdelaar’s management unaudited and prepared in accordance with Dutch generally accepted accounting principles (“Dutch GAAP”). 3: A measure of market share based on volume sold and revenue. Market share information provided by CanAdelaar management based on their research Wietexperiment: coffee shops. 4: Assessments of CanAdelaar management. 5:00 Market share information provided by CanAdelaar management based on their research Wietexperiment: coffee shops. 6:00 CanAdelaar’s income is provided by CanAdelaar’s management, unaudited and prepared under Dutch GAAP. USD figures based on EUR/USD rate of 1.165 as of December 5, 2025, source: Factset. 7:00 CanAdelaar EBITDA is provided by CanAdelaar management, unaudited and prepared under Dutch GAAP. USD figures based on EUR/USD rate of 1.165 as of December 5, 2025, source: Factset. 8 o’clock CanAdelaar’s management estimate, unaudited, for the twelve months ended September 30, 2025. 9:00 Market share information provided by CanAdelaar management based on their research Wietexperiment: coffee shops. 10:00 Based on EUR/USD exchange rate of 1.165 as of December 5, 2025, source: Factset. 11:00 LTM: twelve months ended September 30, 2025; CanAdelaar’s revenue and EBITDA are provided by CanAdelaar’s management, unaudited and prepared under Dutch GAAP. 12:00 Source: Scientific Research and Data Center (WODC) of the Netherlands Ministry of Justice and Security, as of March 31, 2025. 13:00 Based on an exchange rate of 1.165 EUR/USD as of December 5, 2025, source: Factset.
New Cannabis Ventures’ NCV Newswire aims to gather high-quality content and information about leading cannabis companies to help our readers filter through the noise and stay on top of the most important cannabis business news. The NCV Newswire is edited by an editor and is not, however, automated. Got a secret news tip? Get in touch.
Hemp stocks, as measured by the Global Hemp Stock Index, were quite volatile in 2024 and have been in 2025 as well. The index fell 7.5% in December last year to close 15.2% lower for the year, and it was also a poor start to 2025. It hit a new all-time high of 4.97 on the last day of March, before falling back in early April. The index gained 11.5% in April, but ended the second quarter from there, closing at 5.02. Q3 was strong with increases in July and August, and September, which started with a pullback, ended with another increase before pulling back on the last day. The index ended September with only a small decline before falling in October. It retreated sharply again in November, falling 11.0% to 6.08.
After collapsing 21.8% in late 2024 to 6.88 in Q4, the index fell heavily in Q1 and then marginally in Q2. The global hemp stock index, which now has 28 members, fell 27% year-to-date in June. After a 53.0 percent rally in the third quarter, the index increased by 11.6 percent compared to last year. It is now down 20.8% in Q4 and down 11.6% year-over-year.
Since its peak in February 2021, the global hemp stock index is down 93.4% from a closing high of 92.48.
The top 3 names were all up more than 11% in November;
Each of these stocks has been significantly upgraded year-over-year, and Q4 earnings were positive for each of them, especially Jazz Pharma and Village Farms.
November’s 3 weakest names are all down more than 39%;
All of these stocks are down significantly year-over-year, and Q4 has been brutal for each.
We will summarize the performance of the index again in a month. In April, we historically combined the two articles, and we update here the other indexes that New Cannabis Ventures continues to maintain: the American Cannabis Operator Index, the Ancillary Cannabis Index, and the Canadian Cannabis LP Index.
American Hemp Operator Index
The ACOI fell again in November, falling 24.9% to 9.17. It rose 123.6% to 12.99 in Q3 and is now up 9.7% year-to-date from 8.36. The large AdvisorShares Pure US Cannabis ETF ( MSOS ) fell 8.7%.
The strongest performer in November was Glass House Brands (OTC: GLASF ) (NEO: GLAS.AU ), which fell 13.5%. The weakest, Cresco Labs (OTC: CRLBF ) (CSE: CL ), fell 36.8%.
The index will have eight members in December with the removals of Ascend Wellness (OTC: AAWH ) and Vireo Health (OTC: VREOF ).
Auxiliary cannabis index
Ancillary commodities lost 1.7% in November as the index fell to 10.83. The index, which rose 14.5% to 12.72 in Q3, now fell 14.9% in Q4. It is down 21.4% year-to-date from 13.77 in 2025.
The strongest stock in November was Turning Point Brands, which rose 11.4%. The weakest, WM Technology, fell by 19.3%.
In December, the index will have the same eight members.
Canadian Hemp LP Index
Canadian LPs fell 15.0% in November as the index fell to 56.00. The index, which increased by 78.4% in the third quarter, reaching 73.56. now down 23.9% in Q4 but up 11.8% in 2025 from 50.11 year to date.
The strongest Canadian LP in November was Organigram Holdings (TSX: OGI ), which rose 0.4%, leaving it as the sole gainer on the index. Simply Solventless (TSXV: HASH ) was the weakest, down 39.1%.
In December, the index will have the same thirteen members.
Based in Houston, Alan leverages his experience as an online community founder 420 Investorthe first and still the largest due diligence platform focused on publicly traded stocks in the cannabis industry. With his extensive network in the cannabis community, Alan continues to find new ways to connect the industry and facilitate its sustainable growth. time New Cannabis Ventureshe is responsible for content development and strategic alliances. Before turning his attention to the cannabis industry in early 2013, Alan, who began his career on Wall Street in 1986, worked as an independent research analyst with more than two decades of research and portfolio management experience. A prolific writer, with over 650 articles published since 2007 Looking for Alphawhere he has 70,000 followers, Alan is a frequent speaker at industry conferences and frequent source Media including the NY Times, Wall Street Journal, Fox Business and Bloomberg TV. Contact Alan. Twitter: |: Facebook |: LinkedIn: |: El
Statistics Canada released September retail sales for the country, with Cannabis sales are on the rise from August levels, down 1.4% to C$475.0 million. This sequential decline increased on a daily basis due to fewer days compared to the previous month. August, originally reported at C$498.7 million, was revised slightly higher to C$503.1 million. Sales rose 6.6% in September from a year earlier, up from 8.3% in May and 7.5% in June. This was also below the 20.3% growth rate in August 2023 and above the previous lowest annual growth since the start of legalization in September 2024 of -0.9%, and it was significantly down from the 9.1% growth in December. In August, the record growth was only 1.8% higher than the index of the previous year. Total sales grew by 4.5% to C$5.39 billion in 2024 and 4.9% year-to-date in 2025.
An increase in the number of shops, as well as a fall in the prices of flowers that attract consumers from the illegal market, have boosted sales. In Ontario, the most populous province, sales fell 5.0% from August and less than 1% from a year ago. Alberta was down 5.5% from August and 4% from a year ago. British Columbia was down 6.0% from August as it grew 1% a year ago, while Quebec was down 5.2% from August and up 48% from a year ago.
October sales data will be released on December 19.
Based in Houston, Alan leverages his experience as an online community founder 420 Investorthe first and still the largest due diligence platform focused on publicly traded stocks in the cannabis industry. With his extensive network in the cannabis community, Alan continues to find new ways to connect the industry and facilitate its sustainable growth. time New Cannabis Ventureshe is responsible for content development and strategic alliances. Before turning his attention to the cannabis industry in early 2013, Alan, who began his career on Wall Street in 1986, worked as an independent research analyst with more than two decades of research and portfolio management experience. A prolific writer, with over 650 articles published since 2007 Looking for Alphawhere he has 70,000 followers, Alan is a frequent speaker at industry conferences and frequent source Media including the NY Times, Wall Street Journal, Fox Business and Bloomberg TV. Contact Alan. Twitter: |: Facebook |: LinkedIn: |: El
