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,

This week, Scotts Miracle-Gro, the largest stock in the Global Hemp Stock Index by market capitalization, announced that it has found a buyer for its Hawthorne Gardening Company business in Vireo Growth. This news first appeared in an online article published by the Wall Street Journaland then Vireo issued a press release like Scotts Miracle-Gro, which also reported in its fiscal 1st quarter.

The deal is not a done deal. Vireo called it a “non-binding memorandum of understanding” but did not discuss the terms of the deal or when it might close. Scotts Miracle-Gro, which had already told investors it was working on this type of deal, did not disclose Hawthorne’s financial results for the 1st quarter. Analysts didn’t really ask any questions about it during the conference. The WSJ article said Vireo is giving Scotts Miracle-Gro 13% of its stock in return, but neither company has disclosed that in their press releases or SEC filings.

I include SMG in my 420 Investor Focus List, but Vireo is not a member of that group. Vireo also failed to qualify for the Global Cannabis Stock Index due to its low trading volumes. As I detailed five weeks ago, The Vireo has grown very large in terms of revenue and its geographic focus. The stock was then at $0.625 and is now lower, closing at $0.55. On Christmas Eve, the decline was 12.0%, while the MSOS fell 10.1%.

Maybe investors are interested in this deal and I’m not. First, it’s not a done deal. Second, to purchase Hawthorne, the investor must assume 280E taxation risk. Third, the price seems high, as 13% of the company is worth about $75 million. Fourth, it’s not clear to me that marrying a hemp operator with a subsidiary makes sense as I recall TILT Holdings.

I have followed Hawthorne Gardening for a long time and am glad that CEO Hagedorn and his team have gone ahead and purchased it and expanded it. The hemp industry has been struggling for about five years, and the big drop in Hawthorne Gardening’s revenue is not SMG’s fault in my opinion. It’s not clear to me how Vireo Growth will make it a better action, but I hope it has a good plan.

I continue to believe that investors should pay close attention to what is happening with shares in Vireo. This potential acquisition was not something that was discussed by analysts or investors, but today’s volume of 277 thousand shares was very low. Once again, Vireo, thanks to its aggressive M&A activity, has become the 7th largest MSO in the NCV Revenue Tracker. It remains very troubling to me that stocks are not earning a lot of interest.

Sincerely,

Alan:

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

Exclusives

Canadian cannabis sales were abolished in November

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.

Hemp stocks, as measured by the Global Hemp Stock Index, were quite volatile in 2024 and then again in 2025 as well. Although the index rose in December, it fell on the year. In January, the indicator decreased by 10.6%, reaching 5.89.

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 27 members, gained 53.0% in the third quarter but fell 14.2% in the fourth quarter, down 4.2% for the full year.

Since its peak in February 2021, the global hemp stock index is down 93.6% from a closing high of 92.48.

The 3 strongest names in January, each an MSO, were all up more than 4%;

January’s 3 weakest names are all down more than 26%;

• Akanda (NASDAQ: WILL). -44.0%
• iPower: (NASDAQ: IPW). -42.0%
• RHYTHM (Name: RYM). -26.0%

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 sank in January, falling 12.5% ​​to 11.53. In 2025, it increased by 57.7%, reaching 13.18. The large AdvisorShares Pure US Cannabis ETF ( MSOS ) fell 14.6% in January.

The strongest stock in January was Glass House Brands, which rose 4.0%. The weakest, Trulieve (OTC: TCNNF ), fell 20.5%.

The index will have nine members in February with the removals of Ascend Wellness (OTC: AAWH ) and Grown Rogue ( GRUSF ).

Auxiliary cannabis index

Ancillary commodities lost 5.9% in January as the index fell to 10.44. In 2025, the indicator decreased by 19.5%, reaching 11.09.

January’s strongest stock was Turning Point Brands, which rose 21.8%. The weakest iPower fell by 42.0%.

In February, the index will have the same ten members.

Canadian Hemp LP Index

Canadian LPs fell 4.9% in January as the index fell to 56.13. In 2025, the indicator increased by 17.8%, reaching 59.01.

Canada’s strongest LP in January was Simply Solventless Concentrates (TSXV: HASH ), up 28.6%. Tilray Brands (TSX: TLRY ) was the weakest, down 18.0%.

In February, the index will have the same thirteen members.

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,

The hemp industry ended 2025 with a slight decline. The New Cannabis Ventures Global Cannabis Stock Index, which started at 100 at the end of 2012, has fallen 4.2% in 2025 to 6.59. This was the 5th consecutive annual decline.

The AdvisorShares Pure US Cannabis ETF (NYSE Arca: MSOS ) rallied last year, gaining 20.5%, but it’s down a lot since late 2020 when it was at $36.50. The 5-year yield at $4.72 was -87.1%. During that time, the Global Hemp Stock Index fell 85.2 percent, just shy of a recession.

So far in 2026, the global hemp stock index is unchanged. MSOS, which rose in December, fell 3.0% to $4.58. After last year’s big jump, investors probably aren’t too worried just yet. Perhaps they shouldn’t have, because the realignment is still in progress, and if it passes, it’s very incremental because of the elimination 280E tax. Of course, it remains to be seen whether a realignment will actually happen, and if so, when it will happen.

Investors or traders have rushed to MSOS over the past few years in hopes of a reshuffle. The lift in late December had massive volume, surpassing the volume in August when rumors of a possible realignment under Trump first surfaced. It was also heavier than when the MSOS fell after the last election in 2024. So far in 2026, volume has been fairly low, as seen in this six-month chart:

MSOS is still trading above the 12/11 price, as are most of its stocks. It’s also trading up more than 100% from near its all-time low of $2 set last year. To me, while the stock has fallen well from its recent peak, down 36.8% from its 12/18 intraday high, it looks like it could continue to decline. The recent downturn has not spurred buyers. In my 420 Investor model portfolio, I have very little exposure to MSOs compared to the Global Hemp Stock Index, just 6.6% in both MSOs compared to 25.9%.

The ETF, which is slightly leveraged, is loaded with three MSOs, as I’ve discussed before: Curaleaf (OTC: CURLF ), Green Thumb Industries (OTC: GTBIF ) and Trulieve (OTC: TCNNF ) at 67.7% MSOS. Curaleaf, which has a major debt challengeso far in 2026, it has fallen by 1.4% and moved from the second largest position to the third. Trulieve, the current largest holding, fell 5.6%, while GTI, now the second largest, rose 2.0%. MSOS has not purchased or sold shares of any of these MSOs so far in 2026.

I have watched MSOS since its day 1 which was in late 2020. Although I was and continue to be highly critical of the way it was run, I commended them for their early efforts. Unfortunately, there are no cannabis investment funds, including ETFs, that come close to MSOS in terms of assets under management. The ETF has grown its share count dramatically over the past year, despite a recent small drawdown. Investors should understand that if it hits redemptions, it could put pressure on the MSO subsector and the price of MSOS.

It is very possible that hemp will be reclassified with the end of 280E taxation. It is also possible that large MSOs will not have to pay past 280E taxes that they did not pay. If 280E goes away and the previous liabilities go away, it will be very positive for MSOs and it will likely eliminate potential MSOS repayments. Of course, if 280E holds, traders stacked in MSOS will have trouble finding new buyers. No chart will answer this question about the future of the 280E.

I continue to recommend that cannabis investors look beyond just the MSO part of the market. I have discussed several times, as well as recently, that hemp REITs make more senseand I have a lot of exposure to both of them in my modeling portfolio. There are other supporting names that should have upside if the 280E goes away for their customers, but less downside if it stays. Canadian LPs might also make sense. 280E taxation makes no sense and should go away, but it seems premature to suggest that it will.

Sincerely,

Alan:

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

Exclusives

Growth in cannabis sales was slow in December

Florida’s medical cannabis market is shrinking

Capital increase

Umbrella growth recapitalizes the balance sheet

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