The string of acquisitions, mergers and other deals in the marijuana industry follows President Donald Trump’s December 18 executive order to downgrade marijuana’s status under federal law.
But while some observers agree that this historic move – and with it, the promise of other major changes – seems to have been the reason that pushed at least some of these deals to the end, cannabis M&A must be changed when the reorganization of marijuana is completed, said analysts contacted for this article. MJBizDaily.
“The agreements that we’re seeing are agreements that have been in the works for a long time, and the signing of the EO was the catalyst to close those agreements,” said Avis Bulbulyan, CEO of California-based cannabis company Siva.
“In the next few months, we will see deals being closed where the signing of the EO was the first trigger to look at deals.”
Currently, companies are still constrained by limited access to capital, regulatory uncertainty and a competitive market while trying to position themselves for long-term growth.
And in that time they’re waiting for federal officials to finish moving marijuana from Schedule 1 to Schedule 3 of the Controlled Substances Act — a potentially revolutionary change that doesn’t have a specific timeline.
“Restructuring will kick-start M&A activity, but the dynamics of how that will play out may mean it will take time,” added Frank Colombo, managing director at New York-headquartered investment and data firm Viridian Capital Advisors.
Trump’s marijuana reform sparked marijuana deals
The first impact of Trump’s marijuana reform was felt when the ink was dry.
That same day, Curaleaf Holdings saw its $110 million expansion in Virginia unravel when it was outbid for $20 million by a Boston-based fund.
Millstreet’s eleventh-hour entry is a direct result of Trump’s order, Bulbuyan said, adding that Curaleaf may have closed the deal and entered Virginia since Trump did not sign the EO.
“Prior to the actual signing of the executive order, the writing was on the wall, and many companies began to position themselves as acquirers or targets,” he said.
“The executive order brought a clear understanding of where things are headed, giving stakeholders confidence and unexpected stability in an unstable market.”
Other transactions announced in the days and weeks after the executive order include:
- Minneapolis-based cannabis operator Vireo Growth has bought Eaze, once the “Uber of Weed,” it announced Dec. 22
- The acquisition of Oregon-based snack maker Wyld by rival Grön was announced on January 5
- Logistics company Nabis is acquiring Humble Cannabis Solutions, it was announced on January 6
- The acquisition of California-based edibles and vape brand Sunderstorm’s Lime brand was announced on January 12
- KEY Investment Partners’ acquisition of Denver-based MSO BellRock Brands, whose portfolio includes Mary’s Medicinals and Dixie Elixirs, was announced Jan. 12
In the latter case, former Curaleaf CEO Joe Bayern will become CEO of the newly formed MM Brands.
In a statement, KEY Investment founding partner Jordan Youkilis noted that “cannabis restructuring on the horizon” makes the move “a good deal at the right time.”
Marijuana companies aren’t waiting for marijuana reform to seize opportunities
Wyld’s deal to buy Grön has been in the works for months despite M&A volatility caused by limited access to capital, Grön President Draper Bender said.
“The hope is that as restructuring continues, there is renewed hope that both the equity and debt capital markets will begin to reopen the sector,” he said.
“With access to capital, these operators can pursue complementary acquisitions where close synergies between production, distribution, branding and logistics can be realized in the first year.”
But as observers have pointed out, some cannabis operators could not wait for a new reversal to start making moves.
Vireo’s October purchase of Schwazze and PharmaCann continued an acquisition spree that began when it secured $75 million in equity financing in December 2024 to acquire one state operator: Deep Roots Harvest in Nevada; Flowers in Florida; Appropriate Products 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 recoup its new acquisitions without the burden of heavy debt by acquiring businesses that are struggling with low valuations and paying for stock.
How Trump’s marijuana reform could change cannabis M&A forever
As 2026 rolls around, the industry is watching activity in Washington, hoping that a completed marijuana repeal will free up money to do more M&A activity — and, ultimately, a new class of deals.
“Most of the M&A in the past has been in the infrastructure sector of the industry,” Bulbulyan said.
“Going forward, you’ll see smaller infrastructure deals and more projects where business and revenue models, IP and existing infrastructure are brought together in meaningful ways.”
Margaret Jackson can be reached at margaret.jackson@mjbizdaily.com.
