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,
There hasn’t been much cannabis news this week, but what we did learn was kind of surprising. Cannabist, which sold one of its Virginia businesses to Verano for $90 million in 2024, announced the sale of its remaining Virginia assets to Curaleaf. Cannabist’s press release disclosed the price, while Curaleaf did not. Cannabist rallied and sold off and is now down 13.9% this week and down 39.9% year to date. The company is extremely difficult, in my opinion, and doesn’t really hold much value for investors given its low market cap and small trading volumes. Creditors are the ones who care.
Curaleaf, on the other hand, rallied on Wednesday after pulling back on Tuesday after announcing a pending $110 million buyout. It’s up 6.9% this week and is set to rise 56.4% in 2025. This is much better than the Global Hemp Stock Index, which is down 11.5% year-to-date at 6.09. MSOS, which carries most of Curaleaf, is down 3.2% in 2025.
I downgraded Curaleaf to Strong Sell at Seeking Alpha in April when it was $0.98 and yesterday it closed at $2.44. I remain very bearish on stocks and today I share an updated outlook. The main problems I see are that the valuation is too high relative to peers, the company has huge debt and MSOS has a lot.
Curaleaf’s rating is high compared to peers
While the current value of 7.8X projected adjusted EBITDA for 2026 may seem low, it is a large premium to its peers;
Curaleaf outperformed the major MSOs in 2025, driving this high relative valuation;
Curaleaf’s balance sheet is poor
The balance sheet is bad and getting worse. Net debt was $436 million at the end of 3Q, but most of the debt is due at the end of 2026, an amount that far outweighs cash. Management said on a conference call that it will replace it soon. That debt is currently realized at 8 percent cost. The company reported a current ratio of 1.5X. but that large debt due in 2026 will become current instead of long-term at the end of Q4 and this ratio will drop to 0.6X. The Virginia purchase would reduce it further.
Of course, the company can roll over the debt, but lenders should consider negative tangible equity as of Q3 of $853.6 million. This includes huge tax liabilities of $759 million. It is possible that the company will get a new loan, but investors should expect the interest rate to be potentially higher than the current 8%. The company may also sell some shares.
MSOS owns a lot of Curaleaf
MSOS controls 74.47 million shares of Curaleaf, its largest position. The Curaleaf has a thin flame compared to its peers and this further reduces it. Curaeaf’s shares are 678 million, so MSOS’s stake is more than 10% of the company’s outstanding subordinated shares, which trade over the counter in the US and on the TSX in Canada. I add the multiple voting shares as well as the RSUs and PSUs and some cash options to get a total stock dilution of 803 million, so MSOS has a 9.3% stake in the company.
If MSOS receives repayments again, it will likely need to sell more Curaleaf. Most investors remember the large number of ETF shares that redeemed in late 2022 and 2023. There were further redemptions in early 2025 and then again in November, when the number of shares fell 2%. Yesterday, shares fell by 0.5% due to another redemption. Despite this decline, the number of shares expanded by 41% in 2025. Curaleaf shares controlled by MSOS are up 54% year over year, compared to 32% for Trulieve and 2% for GTI. Curaleaf now holds the largest position at 26.7%, while Trulieve has 21.6% and Green Thumb Industries has 21.3%.
When MSOS received redemptions in November, it reduced Curaleaf shares it controlled by 2%, and then again yesterday. If the ETF receives more redemptions, it will likely sell more CURLF. This could be a problem if the ETF receives redemptions after bad news regarding 280E taxation emerges, as there are fewer buyers in that scenario.
Conclusion
Curaleaf traded at $0.84 on June 30 and rose to $2.04 on August 8, just ahead of the potential restructuring news. It’s unclear to me why Curaleaf is doing so well compared to its peers and other cannabis stocks. Cannabis stocks have been very volatile. Two that I have not liked at all over the past few years, Canopy Growth and Tilray Brands, have fallen so much and sold off the stock so much that I am now neutral on both. The demise of the 280E, if it happens, would be great for Curaleaf, but there are others that would benefit greatly as well. Investors looking to buy an MSO have better options than Curaleaf, which is quite risky.
Sincerely,
Alan:
New Cannabis Ventures publishes curated articles as well as exclusive news. Here is what we published last week.
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:.
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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
Jushi Holdings Inc. refinances Senior 1st Lien and Senior 2nd Lien facilities with $160 million in non-dilutive debt financing
Adds cash to balance
The company will report financial results for the fourth quarter of 2025 on March 31, 2026
BOCA RATON, Fla., March 27, 2026 (GLOBE NEWSWIRE) — Jushi Holdings Inc. (“Jushi” or the “Company”) (CSE: JUSH) (OTCQX: JUSHF), a vertically integrated, multi-state hemp operator, announced that it has completed the refinancing (the “Refinancing”) of its former senior secured credit facility (the “Former 1st Lien Credit Facility” and the “Former Lien Credit Facility”) through the issuance of a $160 million senior secured term loan (the “Term Loan”) by FocusGrowth Asset Management. managed funds together with other members of the credit syndicate. FG Agency Lending LLC, a subsidiary of FocusGrowth Asset Management, acted as administrative agent for the Term Loan.
The term loan was issued at an initial issue discount of 4.0% and bears interest at 12.50% per annum, payable monthly and matures three years from the date of issue. The Term Loan is guaranteed by certain direct and indirect subsidiaries of the Company and is secured by senior liens on certain assets of the Company and certain direct and indirect subsidiaries of the Company. The term loan is non-amortizing and non-deductible to current shareholders.
After the issuance of the term loan and the repayment of the former 1st lien loan and the former 2nd lien loan, the Company has approximately $35 million in cash, cash equivalents and restricted cash as of March 27, 2026.
Term Loan Participation by James Cacioppo and Dennis Arsenault
Serpentine Capital Management III, LLC, an entity controlled by Jushi’s Chief Executive Officer, President and Founder James Cacciopo, participated in the Term Loan in a principal amount of approximately $28 million. Dennis Arsenault, the Company’s founder and significant shareholder, participated in the Term Loan in a principal amount of approximately $21 million.
Mr. Cacioppo, as a director and officer of the Company, and Mr. Arsenault, who owned more than 10% of the Company’s then issued and outstanding voting shares (the “Shares”) on a converted basis (calculated in accordance with MI 61-101), were deemed to own more than 10% of the Company’s shares under MI1 (the “Shares”). Parties”) at the time of termination of the Term Loan. As a result, the Refinancing, to the extent it involves Related Party participation in the Term Loan, is a related party transaction under MI 61-101.
The Company has relied on the exemptions from the official valuation and minority shareholder approval requirements under Sections 5.5(b) and 5.7(1)(f) of MI 61-101 on the basis that the Company does not have its securities listed on any of the specified markets set forth in Section 5.5. (b) of MI 61-101 and that the Term Loan is not convertible, directly or indirectly, or redeemable, directly or indirectly, into equity or voting securities of the Company or any of its subsidiaries. The Company did not file a material change report on the related party transaction 21 days prior to the closing of the Term Loan because the details of the Refinancing were not confirmed at that time. The company considered this reasonable to complete the refinancing quickly. The Refinancing was reviewed by a special committee of independent directors and the special committee recommended approval of the Refinancing to the Board. The refinancing was then discussed and approved by the board (Mr. Cacioppo abstained).
The company will report financial results for the fourth quarter of 2025
Management will host a conference call and audio webcast on Tuesday, March 31, 2026 at 4:00 PM ET to discuss the Company’s fourth quarter financial results.
Event: 2025 Fourth Quarter and Full Year Financial Results Conference Call
Date: Tuesday, March 31, 2026
Time: 4:00 PM Eastern Time
Direct Call: 1-844-676-1334 (US & Canada Toll Free)
Conference ID: 10204794
Webcast. Register
For interested individuals who are unable to join the conference call, a webcast of the call will be available through April 30, 2026 and will be available via the webcast on Jushi’s Investor Relations website.
About Jushi Holdings Inc
We are a vertically integrated cannabis company led by an industry-leading management team. Jushi is focused on building a multi-national portfolio of branded cannabis assets through opportunistic acquisitions, distressed training and competitive applications. Jushi strives to maximize shareholder value while delivering high-quality products at all levels of the cannabis ecosystem. For more information, visit jushico.com or our social media channels: Instagram, Facebook, X and LinkedIn.
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.
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.
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:.
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
Illinois released sales figures for two months recently. The data was published for the last time at the end of January. The previous report was for Cannabis for adults in May. The November document explained that the lack of data was due to the Metrc transition. Here is the updated data as of the end of February.
The state’s adult cannabis sales fell 5.1% sequentially to $110.7 million in January and then fell 5.4% sequentially in February. Annual growth was -21.0% in January and 19.8% in February, a slight improvement from the last level. Here’s a chart of adult sales over time:
After growing 106% in 2021, 13% in 2022 and 5% in 2023, annual sales for adults are set to grow 5.4% to $1.72 billion in 2024. In 2025, they decreased by 12.5% and amounted to 1.51 billion dollars, which was lower than the total figure of 2022. Two months into 2026, sales for adults are down 20.4%.
There hasn’t been an update from the state on medical cannabis in a while. The state exempts the sale separately from its medical plan, and April issue showed that sales fell 1.6% sequentially to $19.7 million, down 13.2% year over year.
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
