President Donald Trump’s executive order on December 18, 2025, kicked off a wave of mergers and acquisitions in the cannabis industry. This move to reschedule marijuana from Schedule I to Schedule III has sparked deals worth millions, with experts predicting even bigger action ahead. But what does this mean for businesses and investors? Dive in to see the full picture.
Trump signed the executive order just before the holidays, directing federal agencies to ease restrictions on marijuana. This shifts it to Schedule III, like some painkillers, making research and medical use simpler. The change does not legalize weed nationwide, but it opens doors for banking and tax breaks.
Industry leaders cheered the news. Stocks in cannabis companies jumped right after the announcement. The order could unlock billions in capital by letting banks work with cannabis firms without fear of federal penalties. Sources close to the White House say Trump aimed to boost medical research and cut red tape.
This follows years of debate. Past presidents talked about reform, but action stalled. Trump’s step came after pressure from business groups and states where pot is already legal.
One key point stands out. The order sets up a process that might take months to finalize through the DEA. Until then, companies rush to position themselves.
Wave of Deals Hits the Market Fast
Right after the order, cannabis firms started snapping up others. For example, major players announced mergers to combine operations and grab market share.
In the weeks following December 18, at least five big deals made headlines. One involved a multi-state operator buying a smaller grower for $200 million. Another saw a tech firm merge with a dispensary chain to boost online sales.
This flurry shows confidence that rescheduling will lift the industry. Data from MJBizDaily tracks over $1 billion in transactions since the order. That’s up 30% from the same period last year.
Experts point to tax relief as a driver. Under old rules, cannabis businesses faced harsh IRS limits. Now, they might deduct normal expenses, freeing up cash for growth.
Here are some standout deals:
- A California cultivator acquired by a national brand for expanded production.
- An East Coast retailer merging with a delivery service to cut costs.
- A CBD maker partnering with a pharma company for new products.
These moves aim to build stronger firms ready for federal changes.
What the Future Holds for Cannabis Business
Looking ahead, analysts expect more mergers as rescheduling wraps up. Full approval could come by mid-2026, per government timelines.
Bigger companies might swallow smaller ones to dominate markets. States like New York and Florida could see hot action, where legal weed already thrives.
One report from a leading financial firm notes potential for cross-state trade if rules loosen further. But hurdles remain, like interstate transport bans.
Investors watch closely, with some pouring money into cannabis stocks expecting 50% growth in the next year. A study by New Frontier Data, done in early 2026, shows the U.S. market could hit $50 billion by 2030 if reforms stick.
Challenges linger. Opponents worry about increased use and push for stricter controls. Yet, supporters argue it creates jobs and tax revenue.
In a twist, the order includes a pilot for Medicare to cover CBD products. This could spark deals in the health sector.
Voices from the Industry Weigh In
Business owners share mixed views. A Colorado grower said the order “finally levels the playing field.” But a small operator in Oregon fears big firms will crush independents.
Advocates praise the shift. Groups like the National Cannabis Industry Association held events to discuss impacts.
Politicians react too. Some Republicans back Trump, while Democrats call for full legalization.
This rescheduling might reshape how Americans view pot, from street drug to medical tool. Recent polls show 70% support for reform, up from a decade ago.
One expert from a law firm noted in a January 2026 webinar that mergers will focus on tech and supply chains.
| Company | Deal Type | Value (Millions) | Date |
|---|---|---|---|
| Green Thumb Industries | Acquisition | 150 | Dec 2025 |
| Curaleaf | Merger | 300 | Jan 2026 |
| Trulieve | Partnership | 100 | Dec 2025 |
| Verano Holdings | Buyout | 250 | Jan 2026 |
This table highlights key transactions, based on public filings.
The cannabis world buzzes with energy after Trump’s order. It promises growth but demands smart moves from players. As deals pile up, the industry stands at a turning point, blending hope with real challenges.