Roth Capital writes that President Trump’s expected push for the government to loosen federal restrictions on marijuana is now “imminent”, while the Supreme Court is set to decide if it will hear a case on state regulations vs. federal prohibition, which may accelerate cannabis regulatory timelines. While Roth continues to expect a significant amount of clarifying language to accompany any change in Scheduling, the firm believes that the Cannabis group stands to see “immediate upside” upon the announcement of the change. Roth also notes that at 5.7-times expected EBITDA, the group trades significantly below previous 2021 highs of about 17-times on enterprise value to expected EBITDA basis. Publicly traded companies in the space include Aurora Cannabis (ACB), CV Sciences (CVSI), Canopy Growth (CGC), Cronos Group (CRON), Goodness Growth (GDNSF), Green Thumb Industries (GTBIF), IGC Pharma (IGC), Tilray (TLRY), Trees Corporation (CANN) and Trulieve Cannabis (TCNNF).
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