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An Introduction

The 6 largest American cannabis multi-state operator (MSO) stocks were UP 10.3% last week and are now UP an unbelievable 73.5% so far in August. Here are the catalysts behind this amazing surge and the extent to which they affected the performance of the 6 stocks. 

Key Catalysts Behind the Rally

1. DEA Rescheduling Speculation: Donald Trump said on August 11th that his administration was “looking at” moving cannabis from Schedule I to Schedule III and would “make a determination over the next few weeks”. If that should happen it would dramatically reduce tax burdens under Section 280E by allowing MSOs to deduct normal business expense which would make them more profitable and drive up their stock prices.
2. SAFE Banking Momentum: Trump's comments have made investors more hopeful that SAFE Banking legislation - which would allow cannabis firms access to traditional banking - might pass under the current administration  enabling MSOs to lower financing costs, improve transparency and improve investor confidence in the category.
3. Technical Bounce & Short Covering: The rally was amplified by oversold conditions, short covering and momentum trading which created a feedback loop of rising prices and bullish sentiment.
4. Oversold Bounce & Bargain Hunting: The category had declined by 20% as of the end of July which has led to bargain hunters and contrarian investors scooping up shares at depressed prices.
5. Cautious Institutional Interest: While cannabis stocks remain off-limits to many institutional investors due to federal illegality, signs of stabilization and profitability are drawing cautious interest

Below are how the 6 stocks reacted last week, in descending order, and MTD, and any specific catalysts that contributed to a constituent's surge:

Our American Cannabis MSOs Portfolio

1. Verano Holdings (VRNOF): UP 28.1% w/e August 22nd; UP 171.9% MTD
   • Q2 showed improved cultivation yields, product innovation, and stronger retail performance in key markets and management guidance of a stronger second half of 2025, driven by new store openings and wholesale strategy improvements
2. Cresco Labs (CRLBF): UP 26.5% w/e August 22nd; UP 106.7% MTD
   • reported Q2 revenue slightly above expectations, improved margins and strategic cost controls
3. TerrAscend Corp. (TSNDF): UP 20.5% w/e August 22nd; UP 143.9% MTD
   • Q2 showed a 12th consecutive quarter of positive cash flow from continuing operations, an 8th consecutive quarter of positive free cash flow and a steady EBITDA  showing operational strength despite industry headwinds
4. Green Thumb industries (GTBIF): UP 9.8% w/e August 22nd; UP 40.4% MTD
   • Q2 showed a 4.9 % growth in revenue from the previous quarter despite price compression across the industry
5. Trulieve Cannabis (TCNNF): UP 6.3% w/e August 22nd; UP 83.4% MTD
   • Q2 showed a 22% increase in adjusted EBITDA
6. Curaleaf Holdings (CURLF): UP 6.0% w/e August 22nd; UP 108.9% MTD
   • Q2 showed signs of domestic stabilization and international momentum positioning Curaleaf as a global cannabis leader, not just a U.S. MSO

Summary

The Portfolio was ​​​​​​UP 10.3% w/e August 22nd and UP 73.5% so far in August.

Go HERE to create a chart of the portfolio's performance.