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A flurry of acquisitions, mergers and other cannabis sector deals followed President Donald Trump’s Dec. 18 executive order instructing marijuana’s status under federal law to be downgraded.
But while some observers agree that this historic step – and with it, the promise of other major reforms – appears to have been the determining factor pushing at least some of these deals across the finish line, cannabis M&A stands to be transformed when marijuana rescheduling is finalized, analysts contacted for this article told MJBizDaily.
“The signed deals we’re seeing are deals that have been worked on for some time now, and the signing of the EO was the catalyst to close those deals,” said Avis Bulbulyan, CEO of California-based cannabis consultancy Siva.
“Over the next couple of months, we’re going to see deals closing where the signing of the EO was the catalyst to start looking at deals.”
In the meantime, companies are still constrained by limited access to capital, regulatory uncertainty and a competitive market while attempting to position themselves for long-term growth.
And that’s while they wait for federal officials to complete moving cannabis from Schedule 1 to Schedule 3 of the Controlled Substances Act – a potentially revolutionary shift that has no definitive timeline.
“Rescheduling will kick up the M&A activity, but the dynamics of how that’s going to happen may mean it’s going to take some time,” added Frank Colombo, a managing director at New York-headquartered investment banking and data firm Viridian Capital Advisors.
Trump marijuana rescheduling triggered cannabis deals
The first impact of Trump’s marijuana rescheduling executive order was felt when the ink was still drying.
That day, Curaleaf Holdings saw its ambitious $110 million expansion into Virginia unravel when it was outbid by $20 million by a Boston-based hedge fund.
Millstreet’s swooping in at the eleventh hour is a likely direct result of Trump’s executive order, Bulbuyan said, adding that Curaleaf was likely to have closed on the deal and entered Virginia had Trump not signed the EO.
“Before the actual signing of the executive order, the writing on the wall was there, and a lot of companies started to position themselves as an acquirer or target,” he said.
“The executive order brought a clearer understanding of where things are headed, which is giving stakeholders confidence and as much stability as one can expect in a highly unstable market.”
Other transactions announced in the days and weeks after the executive order include:
Minneapolis-based marijuana multistate operator Vireo Growth’s purchase of Eaze, the onetime “Uber of Weed,” announced Dec. 22
Oregon edibles-maker Wyld’s acquisition of competitor Grön, announced Jan. 5
Logistics firm Nabis’ acquisition of Humble Cannabis Solutions, announced Jan. 6
California edible and vape brand Sunderstorm’s purchase of pre-roll brand Lime, announced Jan. 12
KEY Investment Partners’ acquisition of Denver-based MSO BellRock Brands, whose portfolio includes Mary’s Medicinals and Dixie Elixirs, announced Jan. 12
In the latter case, former Curaleaf CEO Joe Bayern will be the CEO of the newly formed MM Brands.
In a statement, KEY Investment founding partner Jordan Youkilis noted that “cannabis rescheduling on the horizon” made the move “the perfect deal at the perfect time.”
Cannabis companies not waiting for marijuana rescheduling to find opportunities
Wyld’s deal to buy Grön was in the works for months despite a stagnant M&A landscape attributed to limited access to capital, said Grön President Draper Bender.
“The hope is that as rescheduling progresses, there is renewed optimism that both equity and debt capital markets will begin to reopen for the sector,” he said.
“With access to capital, these operators can pursue highly complementary acquisitions where near-term synergies across production, distribution, branding and overhead can be realized within the first year.”
But as observers pointed out, some cannabis operators weren’t waiting on rescheduling to start making moves.
Vireo’s October acquisitions of Schwazze and PharmaCann continued a buying spree that began when it received $75 million in equity financing in December 2024 to acquire four single-state operators: Deep Roots Harvest in Nevada; The Flowery in Florida; Proper Brands in Missouri; and WholesomeCo Cannabis in Utah.
Vireo did not respond to a request for comment, but according to Colombo, the company is giving itself time to recalibrate its new purchases without the burden of heavy debt by acquiring struggling businesses at low valuations and paying with stock.
How Trump marijuana rescheduling could transform cannabis M&A forever
As 2026 progresses, the industry is watching activity in Washington, with the hope that finalized cannabis rescheduling will loosen up capital for more M&A activity – and, eventually, a whole new class of deals.
“Most of the M&A of the past expanded on the infrastructure aspect of the industry,” Bulbulyan said.
“Moving forward, you’re going to see less infrastructure deals and more projects where business and revenue models, IP and existing infrastructure is brought together in meaningful ways.”
Margaret Jackson can be reached at margaret.jackson@mjbizdaily.com.
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