Can Trump’s Return Save The Cannabis Sector? Debt Mounts As Giants Face Post-Election Reckoning
The post-election landscape raises uncertainty for cannabis MSOs, with investors hoping for potential relief from the new administration. Verano (OTC:VRNOF), Green Thumb (OTC:GTBIF), and Gold Flora (OTCQB:GRAM) show mixed results, balancing strategic gains with regulatory challenges. While full federal legalization remains a distant possibility, Pablo Zuanic, from Zuanic & Associates, suggests a gradual shift towards rescheduling cannabis to Schedule III, potentially extending into late 2025.
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Verano Holdings: Market Headwinds
Verano posted Q3 results reflecting a mixed performance, with $227 million in sales, marking a 5% sequential decline. The drop was partly attributed to seasonality and market pressures in key states like Florida. Despite acquiring assets from The Cannabist Company (OTC:CBSTF), which were only partially reflected in Q3, Verano’s financial health is strained by a high debt burden—standing at 40% of the last twelve months (LTM) sales, and substantial tax liabilities of 32%. Adjusted EBITDA margins fell by 200 basis points to 30%, indicating pressure on profitability.
The company …