In a potentially game-changing decision, the Department of Health and Human Services (HHS) recently recommended the DEA to consider reclassifying cannabis from its Schedule I status — a classification that denotes no medical value, on par with substances like heroin — to Schedule III.
This historic recommendation sent ripples through the market, as depicted in a recent report by Viridian Capital Advisors.
Insights From Viridian Report
- Viridian’s in-depth analysis targeted 14 major U.S. cannabis cultivation and retail companies, each with a market capitalization surpassing $50 million.
- The report highlighted the rapid change in valuation, noting a surge in the median EV/2023 EBITDA multiple for these companies from 5.69x to 7.9x in just one week following the HHS’s recommendation.
- Such swift changes are unprecedented, …