Cannabis stocks are rising after reports that the U.S. administration is moving toward reclassifying marijuana as a less dangerous drug, a step investors see as a major shift after years of federal inaction.
BNN Bloomberg spoke with Vahan Ajamian, a capital markets analyst at High Tide Inc., about how rescheduling could affect taxation, financing and potential cross-border expansion for cannabis companies.
Key Takeaways
- Reclassifying cannabis would represent the most significant U.S. federal reform for the industry in decades.
- Moving marijuana to Schedule III could sharply reduce punitive tax rates faced by U.S. operators.
- Improved cash flow and access to capital could accelerate growth across the cannabis sector.
- Regulatory clarity could open limited pathways for cross-border partnerships without full legalization.
- The move is widely seen as a first step toward broader normalization and eventual federal legalization.
Read the full transcript below:
ROGER: Cannabis stocks are up today, including shares of Canadian retailer High Tide, after U.S. President Donald Trump’s administration reportedly said it expects to reclassify marijuana as a less dangerous drug. Joining us to discuss is Vahan Ajamian, a capital markets analyst at High Tide. Vahan, thanks for being with us.
VAHAN: Good morning. Thank you for having me.
ROGER: Your thoughts on what we’re hearing today. This is by no means a done deal, but what do you make of it?
VAHAN: You’re correct — it’s by no means a done deal, but it’s very encouraging, based on the report by The Washington Post you referenced. If it’s enacted — and we’ll have to see, because the devil is in the details and the timing and particulars matter — it could be the biggest federal reform in cannabis in decades. It would be a monumental shift in how Washington views cannabis as an industry and as a medicine.
ROGER: What opportunities would that present if marijuana were changed to a Schedule III drug, which would put it alongside substances such as steroids and Tylenol 3, and away from heroin and cocaine?
VAHAN: For us, it could potentially allow us to enter the United States in a limited way, something we’re already exploring with a few partners. As you mentioned, we’re already the largest cannabis retailer in Canada, with 218 stores across the country and 2.2 million members in our loyalty program. We’ve always been interested in expanding into the U.S., and this would be a shift that could allow that down the road.
We’re having discussions with a couple of producers in the U.S. about potential partnerships, whether through brand licensing or similar arrangements, while remaining compliant with our Nasdaq listing, which we’ve had for about four or five years. Our stock trades millions of dollars a day on the Nasdaq, and that’s not something we’re willing to give up. That said, there may be ways to enter the U.S. market more meaningfully than we have today.
ROGER: The U.S. market is complicated, though, because it’s largely state-driven. Do you think that would change if this move goes through?
VAHAN: Potentially. We’ll have to see exactly when rescheduling happens, how markets react and whether there’s follow-up action from Congress, including around banking restrictions. For us, it also comes down to what the Nasdaq will allow, since it takes cues from the federal regulatory landscape.
What’s encouraging is the shift in mentality. You can see it reflected in cannabis stocks today, including ours. There’s been years of frustration with inaction from Washington, which has kept many investors on the sidelines. Now, for the first time, assuming this happens as reported, there appears to be political will at the highest level to move toward normalizing cannabis — something public opinion has supported for years.
ROGER: It’s been difficult for investors. I was speaking with someone who invested early, watched it rise and then fall. There must be frustration given the volatility.
VAHAN: Absolutely. Companies like High Tide sometimes suffer from guilt by association. In Canada, some producers are still not profitable several years into legalization, but that’s not our issue. In the U.S., federal inaction has also kept investors away.
Now, it looks like that wall of frustration may finally be coming down. That would open up significant opportunities for U.S. operators and, down the road, for companies like us, once there’s more clarity on the regulatory framework.
ROGER: If this process moves ahead, any sense of what comes next or how long reclassification might take?
VAHAN: I can’t speak to the timing, but the fact that it’s being pushed at the highest level is very encouraging. We’ll take our cues from how the political and regulatory landscape evolves.
We’re already in discussions with several U.S. producers, so we’ll be ready to act once there’s greater clarity. We’ve always said we want to be a global cannabis player. We made an acquisition in Germany over the summer, buying one of the country’s leading wholesalers and distributors of medical cannabis. Now, with the macro environment improving, we can turn our attention back to the U.S.
ROGER: For now, this would still be medical cannabis only. What kind of market is that in the U.S.?
VAHAN: It’s a very large market. Nearly all states have medical cannabis programs, and almost half have adult-use programs. Again, this is about a mentality shift toward normalization. Depending on the rules and what the Nasdaq allows, we could potentially participate in one or both markets through the right partnerships.
ROGER: Many states already have medical cannabis. What would actually change for them with reclassification?
VAHAN: One major change is taxation. Under Schedule I, U.S. operators often face effective tax rates of 50 to 60 per cent because they can’t deduct normal selling, general and administrative expenses. Moving to Schedule III would allow for more normalized corporate deductions, significantly lowering tax burdens.
That would improve cash flows and could increase access to capital at more attractive rates, helping to accelerate growth across the cannabis industry and make it more economically viable.
ROGER: Does this feel like a step toward full legalization?
VAHAN: Yes, assuming it happens, it’s a first step. After that, the focus turns to issues like safe banking and whether U.S. operators could eventually list on the Nasdaq. We saw a similar process in Canada, where legalization led to gradual regulatory improvements over time.
This would be a strong signal that the world’s largest cannabis market is moving in a more constructive regulatory direction. Full federal legalization remains the ultimate goal, but there could be meaningful progress along the way.
ROGER: We’ll have to leave it there. Vahan, thanks very much for your time.
VAHAN: Thanks for having me.
ROGER: Vahan Ajamian is a capital markets analyst at High Tide.
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This BNN Bloomberg summary and transcript of the Dec. 12, 2025 interview with Vahan Ajamian are published with the assistance of AI. Original research, interview questions and added context was created by BNN Bloomberg journalists. An editor also reviewed this material before it was published to ensure its accuracy and adherence with BNN Bloomberg editorial policies and standards.
