280E

MSOS Hit by Redemptions – New Cannabis Ventures

Published

6 months ago

December 11, 2025

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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,

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.

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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