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friends,

Last week when I was pointing out how overpriced Curaleaf is, I mentioned that the ETF MSOS had a redemption on 12/2 and then it had another redemption on 12/4. Shares traded down 1.3% for the week. They are down 3.4% from their peak in mid-November. However, the stock is up 39.6% year-to-date.

The ETF ended the week slightly leveraged, as it was invested in hemp stocks at 102.8% of its NAV, although sales were made this week. While Curaleaf rallied 9.3% after my piece last week, MSOS actually fell 0.5% to $3.67. Looking at the 6 stocks that have more than 5% exposure, it is the only one that is up, while the rest are down at least 2.8% to 6.8%. These six stocks include the five largest ETFs and also the Glass House brands. Here’s MSOS and its six current holdings, which make up 88.5% of the ETF so far in 2025:

I remain very concerned about the high concentration of MSOS to name just a few. The ETF is down 3.5% this year, while the NCV Global Cannabis Stock Index is down 11.6%. The top three, led by CURLF at 29.5%, includes Trulieve, which I think is currently overpriced relative to peers at 21.2%, and Green Thumb Industries, which I like relative to peers at 20.9%. There is 71.6% in just three stocks.

If MSOS receives more redemptions, it will likely sell some of its large positions. So far, with MSOS’s shares outstanding down 3.4% since mid-November, sales of its shares have been made. MSOS reduced its exposure to shares of Curaleaf by 3.4%, TCNNF by 3.4% and GTBIF by 3.0%. We are nearing the end of the year and this bad trade could end badly. Of course, MSOS may hold for the next few weeks, but it’s already down 34.1% since closing at its 2025 high of $5.57 on 8/29. Redemptions could lead to a dire sale of his holdings.

The latest repayments are not the first, as there were more significant repayments from late 2022 to early 2023. There were also a few small repayments in early 2025. Given the year-over-year growth of the past two years, it was on the rise in the second half of 2024, likely tied to Florida’s election-legalization hopes. from medical to also for adults.

Currently up nearly 40% over the past year, that’s a high rise that has already had a big impact on MSOS’s price. At its peak in August, it was up 55% over the previous year. The world of cannabis investors has become much smaller, leaving the entire industry, including MSOS and MSOs, less liquid.

A potential reshuffle by the Trump administration has excited traders who like MSOS because it’s one security that trades higher and has options. That play started in mid-August before the big news, as someone started buying MSOS shares in early July. Both the number of shares increased and so did the price, and trading volumes also increased. Despite the rise in shares outstanding, MSOS is down year-on-year, although it could fall much further if the restructuring announced under discussion four months ago does not take place. The latest excitement in MSOS 2024 saw it tumble 70.6% from the close on 11/05/24, when the election took place, to its all-time intraday low of 2.02 set in early April.

How MSOS does will ultimately be up to him 280E tax leaving. Otherwise, expect more Widow-like situations. Last week I discussed Curaleaf’s large amount of debt due in 2026 and this is something to watch.

If 280E stays, it will be bad for all MSOs and this ETF. I keep thinking that some of the Canadian LPs are safer than the MSO’s and they can be collected more. I also see some ancillary firms that would benefit greatly if their clients faced less heavy taxation. MSOS fell 23.4% in Q4, while the Global Hemp Stock Index fell 20.8%. If realignment doesn’t happen, this pressure on hemp stocks, especially on IPOs, could get much worse.

Sincerely,

Alan:

New Cannabis Ventures publishes curated articles as well as exclusive news. Here is what we published last week.

Exclusives

Cannabis sales fell in November

Florida’s medical cannabis market continues to struggle

Capital increase

After paying off the old debt, Trulieve starts a new debt deal

M&A:

Cronos Group to buy Dutch hemp company

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

Cronos will enter the Netherlands by acquiring Europe’s largest adult cannabis company

• Cronos will acquire CanAdelaar for $67.0 million in cash^1: 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 EBITDA^2:
• Will give Cronos #1 market share^3: 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 share^9:00 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 million^10:00 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.

Original press release

Published by NCV Newswire

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.