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,

Hemp stocks peaked in early 2021 after a rally in 2020, but have been on a downward trend since then. That 2020 rally was pretty big from the depths of the post-pandemic lows, but the Global Hemp Stock Index is up just 5.2% that year overall. Since then, it has fallen from 44.39 on 12/31/20 to 5.26 currently, a decline of 88.2%. The index was at 100 as of 12/31/12 and has fallen over 94% since then. Only in 2026, the decline was 20.2% year-on-year. What a terrible storm this has been.

I wrote about 280E tax at the end of 2022, naming its potential elimination as one of them two great cannabis catalysts potentially, and another could be exiting the OTC for US hemp companies. Although none of these have happened, the 280E taxation could be abolished if the hemp reclassification takes place. The president issued a decree, but there is no timetable.

These stocks have risen over the past year, but they have fallen significantly since the 2024 election. Hemp stocks certainly look cheap by most standards, but for some, the risk remains that their balance sheets will be left in a very bad shape. A number of companies have already surrendered to debt holders, such as 4Front, Ayr Wellness, Cannabist, Gold Flora, MedMen, Schwazze and Tilt Holdings, but others will have to refinance their debt. I have called Curaleaf out on their massive debt and they have recently extended some of it, although the debt level remains quite high. There are other MSOs that are also facing challenges with their debt.

280E taxation remains a big issue for US hemp operators, but it’s not really a problem for Canadian LPs operating in Canada or around the world. Not only are they not subject to 280E taxation, they trade on NASDAQ and not OTC. However, these stocks are also in a bear market. My model portfolio of 420 Investor currently has 42.8% exposure to Canadian LPs and only 10.3% exposure to MSOs. The Global Hemp Stock Index, recently recalculated on 3/31, currently has 25.8% exposure to MSOs and 29.1% exposure to Canadian LPs.

What I like about Canadian LPs is that they have potential exposure in Europe and Australia, as Canada is a fairly mature market. Canada, which does not have a 280E tax, has a very high tax on cultivation. Maybe that will change. In any case, that market has started to consolidate, with acquisitions and license cuts. However, there are many outstanding licenses (1,002, including 110 pending removal due to suspension, cancellation or expiration). These stocks trade at or below tangible book value. Some of them are subject to 280E end of taxation through their investments.

Here’s the past half-year’s action in the seven Canadian LPs currently in the Global Hemp Stock Index:

All have fallen and two have lost more than half their value. During this period, MSOS is down 23.2%, and the Global Cannabis Stock Index is down 31.5%.

US hemp stocks have been linked to potential realignments and possible elimination of 280E taxation, but those may not happen. Cannabis-backed companies would benefit from helping their clients, but most Canadian LPs are not subject to the US. Hopefully this bear market will end soon. Happy Easter and Passover everyone!

Sincerely,

Alan:

This week’s newsletter is sponsored by the Paul E. Saperstein Co.

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New Cannabis Ventures publishes curated articles as well as exclusive news. Here is what we have published in the last 3 weeks.

Exclusives

Hemp stocks were crushed in March

Capital increase

British American Tobacco to boost Charlotte’s Web stake

Jushi borrows to refinance debt at 12.5%

Financial statements

Tilray Q3 hemp revenue grew well

Follow Alan for real-time updates X.com:. Share and discover industry news with like-minded people on the largest group of cannabis investors and entrepreneurs LinkedIn:.

View: Public Hemp Company Revenue and Earnings Trackingwhich ranks the highest-earning hemp stocks.

Stay on top of the most important communications from public companies by watching what’s coming cannabis investor calendar.

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

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,

I’m a big fan of artificial intelligence, although I have many concerns about its use. Some of the areas where I think AI can help society are healthcare diagnostics and drug discovery, finance, manufacturing, retail, logistics and technology. Workday, a publicly traded HR technology company, was discussed the ways that AI can and will affect certain industries in an article last summer.

I don’t follow WDAY closely, but the stock is down 40.8% so far in 2026, although this weakness is not unique to this stock. I have been and remain bearish on stocks, especially large-cap stocks, but I bought a tech ETF, the State Street SPDR S&P 500 Software & Services ETF, which is down 23.1% for the day. It also includes some very large companies and some that I really like. The reason these stocks have fallen so much appears to be concerns about AI, which could lead to the demise of software as a service (SaaS).

As a fan of AI, but someone who is concerned about it, I’ve been paying close attention to it even though I’m not paying for any of the services. I started using ChatGPT last year and tested it with the world I know, cannabis stocks. I was not satisfied with the answers to my questions. I recently started using Claude which I like better. I’ve never written about AI and how it can help (or hurt) people trying to pick good cannabis stocks, but I’m thinking today because I don’t think the answers are quite right.

As an analyst who has followed this industry closely for over 13 years, I know a lot. What I do know is that I don’t know everything about hemp stocks, and I certainly can’t accurately predict the future. I love that people can use the internet to do their research and it’s so much better than when I was a kid. The investment world then operated by fax, and investors had to deal with stockbrokers. AI can potentially take individuals further with their stock research.

I started writing this article before seeing this example that I will discuss. I want readers to know that this is an example of how Claude can come up with some pretty smart answers to questions. Asking good questions is the right thing for investors to do, but knowing what to do with those answers can be difficult. I believe that artificial intelligence is not there yet, and I base this on the answers to certain questions. I celebrate the improvement, but for those who think that choosing the right cannabis stock will lead to great results, I urge caution. This comment, in my opinion, goes beyond hemp stocks. Stock picking in general can be helped by artificial intelligence, but it is not harmless. Here is an example of a question I asked Claude and I think the answer is very helpful.

I am not trying to influence the price of Glass House Farms because I have literally zero influence on it. I have known Mark Codes for 50 years and love and respect him. I also think Glass House Farms CEO Kyle Kazan and his staff are doing good things.

As I’ve written here for a while, the hemp industry is facing many challenges, the biggest of which is 280E taxation. Will 280E be completed? When? Hemp stock traders and hemp stock investors need to understand that no one knows. There are many other challenges facing the hemp industry, and it goes beyond the US. Can AI answer the question of which direction hemp stocks will move in the right direction? Only if it says “up or down”.

So if you’re relying on AI to tell you when to buy cannabis stocks, or which ones to buy, I urge caution. If you’ve found something that you think gives investors a solid tool for success, please let me know. I wish readers the best with hemp stocks that remain in a bear market that is now more than five years old.

Sincerely,

Alan:

New Cannabis Ventures publishes curated articles as well as exclusive news. Here is what we have published in the last 3 weeks.

Exclusives

Canadian cannabis sales set to grow in 2026

Hemp companies ended 2025 in weakening financial positions

Cannabis sales plummeted in Illinois

Michigan’s cannabis sales are up slightly

Financial statements

Ascend Wellness Saw Wider Operating Loss in Q4

Verano Q4 exceeded analyst expectations

Vireo Growth is now the 7th largest MSO by revenue

Follow Alan for real-time updates X.com:. Share and discover industry news with like-minded people on the largest group of cannabis investors and entrepreneurs LinkedIn:.

View: Public Hemp Company Revenue and Earnings Trackingwhich ranks the highest-earning hemp stocks.

Stay on top of the most important communications from public companies by watching what’s coming cannabis investor calendar.

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