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,

Cannabis was legalized seven years ago. Congress didn’t know exactly what it was doing at the time, but it seemed like a good thing at the time: the Farm Act of 2018. From an investor perspective, there wasn’t much excitement, although there were a few CBD-focused companies enjoying this change. These stocks did well initially, but have fallen and are all small companies that should not be publicly traded.

There have been several challenges. CBD has a good perception among consumers, and the benefits go beyond proven health problems such as treating epilepsy (Jazz Pharma, which bought GW Pharma a few years ago, sold more than $300 million of Epidiolex in Q3). Many people use CBD for many reasons, but the FDA is not involved because it is it is extremely difficult to figure out how to manage the setting about it and asked Congress for help in early 2023.

The federal government’s failure to properly regulate CBD is only part of the problem. The law was poorly written, and companies figured out ways to develop other cannabinoids, including THCA, from hemp. No one was talking about this after the Farm Act was passed, but sales of other products outside of CBD have increased due to the development of technology as well as synthetics. The hemp cannabinoid industry is booming but remains unregulated. Many states have legalized cannabis for medical use, and many have implemented adult-use programs. Unlike manufacturers and sellers of cannabis products, companies that are part of state regulated programs face a much higher level of regulation. They also face 280E taxation.

Discussed this newsletter about fourteen months ago threat and opportunity with cannabis. At the time, no major cannabis companies were involved in cannabis, but that quickly changed as the three largest MSOs all got involved. Curaleaf took one of its Florida medical cannabis dispensaries and turned it into a cannabis store. It also manufactures hemp-based products. Trulieve launched a THC beverage business, and Green Thumb Industries worked with a company that was acquired by publicly traded Agrify. Agrify became RYTHM, Inc., which is controlled by GTI. None of these companies provide much in terms of revenue or even details on the number of units sold. Canadian LPs Canopy Growth, Organigram and Tilray Brands sell THC drinks in the US

This week, another MSO, MariMed, announced it is entering the cannabis market. Glass House Brands, which established a relationship with UC Berkeley, may also enter the industry.

In that August 2024 segment, I suggested that there are good reasons for state-regulated cannabis companies to step out of their comfort zone. The hemp industry remains unregulated by the federal government, so there are potential risks that the federal government will make some changes that will make it more difficult for operators. I would like it to be properly regulated. There are too many unregulated sellers and manufacturers selling bad products to consumers. Many states are cracking down on the hemp industry as well.

One MSO, Jushi Holdings, has filed lawsuits against retailers in Pennsylvania and Virginia for failing to properly follow THC hemp laws in those states. This is not the only sign of war, as many decry the impact of hemp-based cannabinoids on the revenues of state-regulated hemp companies.

This fight is bad for carriers, but it’s also bad for consumers, in my opinion. How this plays out is very uncertain, but hopefully the federal government will be more rational about hemp products. Consumers deserve safe products that are easy to understand and that are available in restaurants and stores.

Sincerely,

Alan:

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

Exclusives

October was a tough month for hemp stocks

Financial statements

Hemp REIT Q3 revenue falls 15%

Cresco Labs’ third-quarter revenue fell 8%

Curaleaf Q3 revenue down 3%

Green Thumb Industries’ third-quarter revenue rose 2%

Trulieve’s third-quarter revenue rose 1%

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 to close 15.2% lower for the year, and has also had a poor start to 2025. It hit a new all-time high of 4.97 on the last day of March, and then dropped 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. In September, the index fell slightly. It retreated further in October, falling 11.1% to 6.83.

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. Now it has decreased by 0.7%.

Since its peak in February 2021, the global hemp stock index is down 92.6% from a closing high of 92.48.

The top 3 names all rose more than 1% in October;

Each of these shares is updated annually.

The weakest names on October 3 are all down more than 22%.

Two of these stocks are down significantly year-to-date, while Tilray is up slightly.

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 October, falling 6.0% to 12.21. It jumped 123.6% in Q3 to 12.99 and is now up 46.1% year-to-date, up from 8.36.

The strongest performing stock in October was Ascend Wellness (OTC: AAWH ) (CSE: AAWH.U ), which rose 8.0%. The weakest, TerrAscend (OTC: TSNDF ) (TSX: TSND ), was down 14.6% again.

In November, the index will have ten members with the addition of Vireo Health (OTC: VREOF ).

Auxiliary cannabis index

Ancillary commodities lost 13.4% in October as the index fell to 11.02. The index, which rose 14.5% to 12.72 in 3Q, is down 20.0% year-to-date from 13.77 in 2025.

The strongest performing stock in October was Chicago Atlantic Real Estate Finance ( REFI ), which rose 0.6%. The weakest, SHF Holdings, fell by 64.5%.

In November, the index will have eight members, with the removal of LIEN and SHFS, both of which joined in October.

Canadian Hemp LP Index

Canadian LPs fell 10.4% in October as the index fell to 65.91. The index, which increased by 78.4% in the third quarter, reaching 73.56. now up 31.5% in 2025 from 50.11 so far.

The strongest Canadian LP in October was Adastra Holdings (CSE: XTRX ), which rose 12.8%. Rubicon Organics (TSXV: ROMJ ) was the weakest, down 22.5%.

In November, the index will have thirteen members, and Cannabis Decibel (TSXV: DB) will rejoin.

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,

A year ago, people were extremely excited about the American hemp industry. President Biden had made his 2022 proposal and was pushing realignment, and it was underway. Also, Florida was on the verge of legalization for adults. The Global Hemp Stock Index closed at 8.22 on 10/31 and is now down 14.7% to close at 7.01 on 10/29, up just 1.9% year-to-date. Big ETF MSOS, which recently closed at 4.52, a premium to net asset value of 4.48, is up 18.6% year-to-date but down 31.5% since the end of October a year ago. Looking at the 5 largest MSOs since then, they have all declined;

In 2025, they all increased except for Green Thumb Industries, which decreased by 14.1%. GTI has the best balance sheet of these five companies. The worst balance belongs to Curaleaf, which is down just 1% since last Halloween and is up a staggering 83.3% in 2025.

In my opinion, things can get very scary. It is not clear to me who is doing this, but someone is playing a big game with MSOS. The ETF has seen its share count grow 44.2% so far in 2025, which is a huge increase. MSOs have very low valuations and have fallen badly in the last almost five years after peaking in early 2021, but if the 280E taxation remains, they could be crushed by their balance sheets and cash flows.

Games are moving out of the MSO space, with many traders rolling the dice on Tilray Brands. Over the past month, the stock has averaged more than 108 million shares in a day’s trading. The stock is up 2.3% in 2025, in contrast to the Global Hemp Stock Index, but it has been volatile. Shares fell 41.4% after hitting a 52-week high after the company reported its fiscal quarter results on 10/9. Even with this big drop, it’s 288% above its all-time low in June. Sales and profits aren’t growing much, but the number of shares is certainly up. Oh, but it’s a collection of memes…

Last week’s newsletter included a table of annual returns for the 28 stocks in the Global Hemp Stock Index. Nine rose more than 20% and six fell more than 20%. A week later, there are still nine that have gained more than 20% (the same nine) and six that are down more than 20% (five previous members and one new member). Looking at the nine big winners, several had a tough week, falling after a more than 0.3% drop in the Global Hemp Stock Index;

Seven of these nine big winners in 2025 were down in October, and five were down more than the Global Hemp Stock Index this month. Trick, friends! Watch out for goblins.

Sincerely,

Alan:

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

Exclusives

Canadian hemp sales hit record highs in August

Financial:

Verano Q3 revenue down 6%

Follow Alan for real-time updates X.com:. You can also 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