Trump’s Marijuana Rescheduling Order Sparks Surge in Cannabis M&A Activity
President Trump’s executive order to reschedule marijuana has ignited a surge in cannabis industry mergers and acquisitions, setting the stage for further dealmaking as federal reforms progress
Key Points
- 1President Trump’s December 18 executive order to reschedule marijuana spurred immediate M&A activity in the cannabis sector
- 2Notable deals included Vireo Growth’s acquisition of Eaze, Wyld’s purchase of Grön, and KEY Investment Partners’ acquisition of BellRock Brands
- 3Industry leaders say the executive order provided clarity and confidence to close or initiate deals, despite ongoing regulatory and capital challenges
- 4Further increases in M&A activity are expected once federal rescheduling is officially completed
President Donald Trump’s December 18 executive order to reschedule marijuana under federal law has triggered a wave of mergers and acquisitions (M&A) across the U.S. cannabis industry. According to MJBizDaily, the announcement provided the certainty many stakeholders needed to finalize deals that had been in progress, while also encouraging new negotiations. Analysts believe this is just the beginning, with even more M&A activity expected once federal rescheduling is officially completed
Avis Bulbulyan, CEO of California-based consultancy Siva, described the executive order as a catalyst for both closing and initiating deals. “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,” Bulbulyan said. He added that the next few months will likely see deals closing that were sparked by the executive action
Despite the uptick in dealmaking, cannabis businesses continue to face challenges including limited access to capital, regulatory uncertainty, and fierce competition. The move to shift cannabis from Schedule 1 to Schedule 3 of the Controlled Substances Act is anticipated to be transformative, but there is still no clear timeline for when this change will be finalized. Frank Colombo of Viridian Capital Advisors noted, “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.”
The immediate aftermath of the executive order saw several high-profile transactions, such as Curaleaf Holdings losing a $110 million Virginia expansion bid to Millstreet, a Boston hedge fund, in a last-minute upset attributed to the new regulatory landscape. Other notable deals include Vireo Growth’s acquisition of Eaze, Wyld’s purchase of Grön, Nabis’ acquisition of Humble Cannabis Solutions, and KEY Investment Partners’ acquisition of BellRock Brands. Jordan Youkilis, founding partner at KEY Investment, stated that “cannabis rescheduling on the horizon” made their acquisition “the perfect deal at the perfect time.”
Some companies, however, were already pursuing acquisitions before the rescheduling order, as seen with Vireo’s series of purchases following its $75 million equity financing in late 2024. Draper Bender, president of Grön, expressed optimism that rescheduling will open up both equity and debt markets, allowing operators to “pursue highly complementary acquisitions where near-term synergies across production, distribution, branding and overhead can be realized within the first year.”
From the OG Lab newsroom perspective, the recent surge in cannabis M&A activity signals a new era of consolidation and strategic repositioning within the industry. As companies await final federal rescheduling, the sector is poised for further transformation, with deal structures likely to evolve beyond infrastructure and into intellectual property and integrated business models. Industry watchers should keep a close eye on regulatory developments and capital flows, as these factors will shape the competitive landscape in the months ahead
