CRB Monitor Securities Update | January 2026

Once again, cannabis-related equities began 2026 with weakness, extending CRBs’ multi-year underperformance relative to global, broad market indexes. Cannabis-themed benchmarks declined during January, reflecting continued volatility, investor caution, and downright frustration across both U.S. multistate operators and Canadian licensed producers.

The MSO group was particularly disappointing during this period. The AdvisorShares Pure U.S. Cannabis ETF (MSOS), the largest cannabis-themed ETF by market cap, lost more than 14% of its value over the month after a brief rally in December 2025, as federal policy progress stalled and structural challenges—such as tax burdens and banking restrictions—remained unresolved. Canadian licensed producers also declined, falling nearly 5% as a group in January with some household names like Tilray, posting double-digit losses.

Overall, January 2026 was characterized by renewed selling pressure, policy uncertainty, and weak pricing trends, leaving cannabis equities broadly negative despite a few isolated stock-specific gains.

The two largest US plant-touching cannabis-themed ETFs, the Amplify Alternative Harvest ETF (NYSE Arca: MJ) (-12.5%) and the actively-managed MSO-heavy Advisorshares Pure US Cannabis ETF (NYSE: MSOS) (-14.6%) collapsed in the last week of January, as investors felt the pain of waiting for any new revelations related to rescheduling or legalization, either from the administration or Congress. As such, marijuana remains a Schedule I narcotic for the foreseeable future and cannabis related investments continue to drift.

Cannabis-Linked Equity Performance

The CRB Monitor equally-weighted basket of top Pure Play Tier 1 CRBs closed out January in negative territory, with a return of -5.4%. This portfolio is an equally-weighted basket of the largest pure play Ther 1 CRBs (representing both US plant-touching and non-US plant-touching MJ companies).

The CRB Monitor equally-weighted basket of Tier 2 CRBs outperformed the Tier 1 CRB basket, posting a -3.4% return for January 2026. In August 2025 CRB Monitor published an update to our article on correlations of Pure Play Tier 1 and Tier 2 CRBs, as well as correlations of MSO and Canadian operators. And what we have observed historically is that these two groups tend to display high correlation (~0.50) in the long term, while their respective performance has a tendency to diverge in the short term. This can be due to (among other factors) the lag from the impact of market forces (in this case marijuana rescheduling) that affect their sources of revenue that are derived from the Tier 1 group. If this theory holds, investors would be expected to load up on Tier 2 CRBs in the short term and we would witness this gap narrow over time.

U.S. equities began 2026 on a generally positive but volatile note, with the S&P 500 posting modest gains during January despite several sharp swings tied to policy headlines and shifting leadership within the market. Performance reflected a rotation away from the mega-cap technology leaders that had dominated returns in 2025. Volatility picked up during the month, highlighted by a sharp selloff on January 20 after tariff threats against European allies triggered a risk-off move. From a macro perspective, economic data remained mixed. January employment figures showed a rebound in job growth and a modest decline in unemployment, but economists continued to characterize the labor market as fragile after a weak 2025. Overall, January 2026 saw the S&P 500 post a modest gain, accompanied by increased volatility and a notable shift in market leadership toward smaller-cap and equal-weighted segments, suggesting a broadening of the equity rally after a tech-driven 2025. The S&P 500 (represented by the SPDR S&P 500 ETF Trust (NYSE Arca: SPY)) posted a return of +1.5% for the month of January.

Largest Tier 1 Pure Play & Tier 2 CRBs by Market Cap – January 2025 Returns

An equally-weighted basket of the largest Tier 1 pure-play cannabis equities (a combination of MSO and CAD companies) rebounded in December, with the majority of the basket performing well for the month. Tier 1 CRBs finished the month nearly in line ahead of the Tier 2 basket (+13.1% vs. -0.6%).

CRB Monitor Tier 1

Many of the companies on our list of Tier 1 CRBs closed out January 2026 with double-digit negative returns. Companies in the MSO basket struggled across the board, as investors waited for the latest developments in reform efforts. Tier 1A MSO Trulieve Cannabis Corp. (CSE: TRUL) (-21.21%), Tier 1B Cresco Labs Inc. (CSE: CL) (-14.5%), Tier 1B Verano Holdings Corp. (CSE: VRNO) (-1.7%), and Tier 1B TerrAscend Corp. (TSX: TSND) (-13.1%) all landed in negative territory, with most of their losses occurring over the last week of the month. The two largest CRBs by market cap, Green Thumb Industries Inc. (CSE: GTII) (-17.9%) and Curaleaf Holdings, Inc. (CSE: CURA) (-11.9%) got crushed in January as well.

Companies in the Canadian CRB basket, which face a lighter impact from rescheduling news (either positive or negative) than MSOs, had mostly negative performance in January. Tier 1B CRB Canopy Growth Corporation (TSX: WEED) (-1.3%) added to its two-month slide, while Tier 1B craft beverage giant Tilray Brands, Inc. (Nasdaq: TLRY) (-17.1%) reversed course following a strong December. Tier 1A SNDL, Inc. (Nasdaq: SNDL) (-5.7%), Tier 1B High Tide Inc. (TSXV: HITI) (-15.8%) and Tier 1B Cronos Group Inc. (TSX: CRON) (-4.6%) were performed generally in line with the basket.

As we have stated regarding these two groups (MSOs and CADs), short-term performance has deviated between the CAD and the MSO baskets, but they tend to mean-revert over time and historical correlations are high. It is also worth mentioning that as an industry cannabis has fallen to the point where no company’s stock can even be regarded as a small capitalization stock; over the last few years they have all shrunk (some by more than 90%) to the point where they are considered micro-caps and consequently non-investable by most institutions from a policy perspective. For more detail on the MSO/CAD relationship, please see our August 2025 Chart of the Month on our CRB Monitor News website.

CRB Monitor Tier 2

An equally-weighted basket of the largest CRB Monitor Tier 2 companies outperformed the Tier 1 basket in January 2026, posting a return of -3.4%. Historically the performance of these two portfolios (given their close business ties) has displayed high correlation (please see our recently-published August 2025 “Chart of the Month”), and we expect the returns of Tier 1 and Tier 2 CRBs to mean-revert over time. When the two baskets deviate from one another in the short term, the deviation could be a signal for investors to rebalance into (out of) the Tier 1 basket and out of (into) Tier 2’s given their direct revenue relationship. This is due to the fact that Tier 2 CRBs are direct suppliers of goods and services to (and derive their revenues from) Tier 1 CRBs. However, the precise moment when these two baskets mean revert is not easy to predict and the costs required to systematically rebalance these illiquid portfolios could eat up any expected material gains from even the best rebalance strategy. In other words, gaming these two baskets can lead to losses, so proceed with caution!

The performance of the largest CRB in the Tier 2 basket, well-known REIT Innovative Industrial Properties, Inc. (NYSE: IIPR) (CRBM Sector: Real Estate) (+3.4%) was higher in January following a modestly positive return in December. On November 3rd IIPR reported its 3rd quarter 2025 results which featured the following highlights:

• Total revenues of $64.7 million and net income attributable to common stockholders of $28.3 million, or $0.97 per share (all per share amounts in this press release are reported on a diluted basis unless otherwise noted).
• Adjusted funds from operations (“AFFO”) and normalized funds from operations (“Normalized FFO”) of $48.3 million and $45.2 million, respectively.
• Paid a quarterly dividend of $1.90 per common share on October 15, 2025 to stockholders of record as of September 30, 2025. Since its inception, IIP has paid over $1.0 billion in common stock dividends to its stockholders.

Tier 2 REIT Advanced Flower Capital, Inc. (Nasdaq: AFCG) (CRBM Sector: Real Estate) (-16.6%) was more in line with the Tier 1 basket for the month of January. On November 12th AFCG reported its 3rd Quarter 2025 financial results (featuring a net loss of $12.5) and the statement from CEO Daniel Neville:

“We continue to make progress resolving our nonaccrual positions and driving loan repayments across our portfolio. There remains limited new capital entering the cannabis market, and our conversion opens the investment universe for AFC beyond real estate owners in cannabis. Today, we see meaningful lending opportunities in several attractive markets, and we are actively evaluating opportunities in the lower-middle market that we believe can generate attractive risk-adjusted returns for the benefit of our shareholders.”

Tier 2 technology company, WM Technology, Inc. (Nasdaq: MAPS), operates Weedmaps, the leading online listings marketplace for cannabis consumers and businesses, and WM Business, the most comprehensive SaaS subscription offering sold to cannabis retailers and brands. WM Technology’s crashed along with the Tier 1 group, with a -18.9% return for January. On November 6^th, MAPS reported its 3rd Quarter 2025 earnings, with the following chilling headlines:

• Net income decreased to $3.6 million as compared to $5.3 million in the prior year period.
• Adjusted EBITDA⁽³⁾ decreased to $7.6 million from $11.3 million in the prior year period.
• Total shares outstanding across Class A and Class V Common Stock were 157.2 million as of September 30, 2025.
• Cash increased to $62.6 million as of September 30, 2025, as compared to $52.0 million as of January 31, 2024.

CRB Monitor News Featured Article: 2025 Cannabis Market Review

The U.S. cannabis and hemp markets faced a turbulent end to 2025, driven by federal legislative moves to restrict hemp-derived THC and an executive order to accelerate cannabis rescheduling, while businesses also dealt with licensing delays, volatile markets, and financial strain. At the state level, California remained the largest market despite a 7% sales decline, Michigan also dipped slightly, New York’s market expanded rapidly, and Illinois saw a sharp drop, while Ohio surpassed $1 billion in combined adult-use and medical sales. Several new markets launched in 2025, including Delaware and Minnesota for adult-use and Alabama for medical, though each experienced legal and administrative delays during rollout.

Corporate challenges were widespread, with multiple major operators entering receivership or restructuring and some investors exiting the sector amid regulatory uncertainty and weak financial conditions. Compliance issues persisted, including enforcement actions around cashless ATM systems and consolidation among seed-to-sale software providers, while companies experimented with hemp as a strategic expansion. However, the federal move to close the intoxicating-hemp loophole created new uncertainty for that segment, leaving the industry looking toward potential regulatory clarity and improvement in 2026.

Click here for the full article on our CRB Monitor News website.

CRB Monitor Securities Database Updates

The CRB Monitor research team has followed cannabis industry regulations daily for close to a decade. For that time we have remained up to date on all the information that is vital to the ongoing breadth and accuracy of our data in the CRB Monitor securities database. While the cannabis industry has faced major regulatory headwinds over those years, we have remained plugged into the news as licensed CRBs’ operations have evolved and survived in a complicated regulatory environment.

On that note, here are some of the cannabis company highlights from January 2026:

New Curaleaf (CSE: CURA) Millcreek Dispensary Location Opens
Tier 1A MSO Curaleaf announced the opening of a new dispensary in Millcreek, Pennsylvania, further expanding its retail presence and improving access to cannabis products in the local market. The new location is part of the company’s broader strategy to deepen its footprint in key U.S. states with established or growing cannabis programs. By increasing its store count, Curaleaf aims to capture additional market share and strengthen brand visibility. The opening underscores continued retail expansion among leading multi-state operators. Curaleaf holds

Cresco Labs (CSE: CL) Opens Sunnyside Tamarac, Expanding Patient Access in Broward County, Florida
Tier 1A MSO Cresco Labs opened a new Sunnyside dispensary in Tamarac, Florida, aimed at expanding patient access across Broward County. The location adds to Cresco’s existing Florida retail network and supports its strategy of scaling operations in large, limited-license medical markets. Management highlighted the new store as part of ongoing efforts to serve a growing patient base in the state. The expansion reinforces Florida’s importance as a core growth market for the company. Cresco Labs currently holds 76 active cannabis licenses and operates in 11 US states.

Ascend Wellness Holdings (CSE: AAWH.U) Announces Opening of New Dispensary in Englewood, Expanding Ohio FootprintTier 1B MSO Ascend Wellness announced the opening of a new dispensary in Englewood, Ohio, marking another step in the company’s expansion across the state. The new location increases Ascend’s retail footprint in Ohio and aligns with its strategy to build scale in regulated markets with strong demand. Management noted that the store will enhance access for local consumers while supporting the company’s long-term growth plans. The move reflects continued investment in retail infrastructure across its core operating states. Ascend Wellness currently holds 77 active cannabis licenses and operates in 10 US states.

Christina Lake Cannabis Announces Sale of Bare Land
Canadian Tier 1A CRB Christina Lake Cannabis announced it completed the sale of 99 acres of non-core, un-serviced land in Christina Lake, British Columbia for gross proceeds of $551,000. The company said the property was no longer needed after its 2024 Midway acquisition, which provides sufficient land to support long-term operations. Management stated that the sale strengthens the balance sheet, improves liquidity, and allows the company to focus on its core operating assets. Proceeds from the transaction will be used for general working capital. Christina Lake Capital currently holds 4 active cannabis licenses.

Jushi Holdings (CSE: JUSH) Inc. Announces Grand Opening of Second Beyond Hello™ in Cincinnati, Ohio, Expanding its Statewide Retail Footprint
Tier 1B MSO Jushi announced the grand opening of its second Beyond Hello dispensary in Cincinnati, expanding its retail presence in Ohio. The new location strengthens the company’s statewide footprint and positions it to serve a growing customer base in the market. Management emphasized Ohio as a key strategic state and noted the importance of building brand recognition through additional store openings. The expansion reflects Jushi’s ongoing focus on scaling retail operations in limited-license markets. Jushi Holdings currently operates in 13 states and holds 51 licenses in active status.

Trulieve (CSE: TRUL) to Open Medical Cannabis Dispensary in Fort Myers, Florida
Tier 1A MSO Trulieve announced plans to open a new medical cannabis dispensary in Fort Myers, Florida, further expanding its already significant presence in the state. The new location is expected to increase patient access and support the company’s leadership position in Florida’s medical cannabis market. The opening aligns with Trulieve’s strategy of deepening market share in core states through continued retail growth. The move underscores the company’s ongoing focus on expanding its dominant Florida footprint. The largest operator in the sunshine state, Trulieve now holds 116 active licenses to operate cannabis in 17 states.

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Cannabis News: Regulatory News Updates

The cannabis regulatory news cycle continues in earnest, featuring stories at both state and federal levels of government as well as around the world. And not surprisingly, cannabis-related investments are driven largely by sentiment and therefore highly sensitive to news (rather than value or growth-based factors). With that said, here are some of the January 2026 highlights:

Kentucky dispensary openings on fast track with first processor approved
Kentucky officials approved the state’s first medical cannabis processor, completing the core supply chain needed to bring products to market. The move is expected to accelerate dispensary openings after early locations faced shortages due to limited supply. Roughly 17,000 patient cards had already been issued as of early January, underscoring strong demand. State leaders said they expect a significant increase in operational dispensaries during the first quarter of 2026, with the program aiming to be fully functional by midyear.

Big banks still refusing cannabis despite Trump marijuana rescheduling
Major U.S. banks are continuing to avoid cannabis clients despite a presidential executive order to reschedule marijuana, citing ongoing legal and regulatory uncertainty. Bank executives said they will not change their stance until rescheduling is formally completed and federal protections are clearer. Observers noted that meaningful banking access will likely require legislation such as the SAFER Banking Act. Without such reforms, many large financial institutions are expected to remain on the sidelines.

Florida law enforcement is arresting adult-use marijuana legalization campaign workers
Law enforcement in Florida has arrested several workers involved in collecting signatures for a cannabis legalization initiative, alleging violations such as petition-related fraud or improper practices. The arrests come amid a contentious push to place adult-use legalization on the 2026 ballot after a prior effort failed. Campaign organizers argue the enforcement actions are politically motivated and intended to intimidate workers. The situation highlights ongoing legal and political battles surrounding cannabis reform in the state.

IRS denies marijuana tourism group’s request for nonprofit tax-exempt status
The IRS rejected a marijuana tourism organization’s application for nonprofit tax-exempt status, citing federal prohibition of cannabis. The agency said the group’s activities were tied to a federally illegal industry, disqualifying it from charitable status. The decision underscores how federal law continues to limit cannabis-related organizations even as more states legalize. It also highlights ongoing uncertainty for ancillary businesses seeking traditional nonprofit or tax advantages.

Florida judge orders state to provide signature count for cannabis legalization petition
A Florida judge ordered state officials to disclose the number of valid signatures collected for a cannabis legalization initiative. The ruling came after campaign organizers sought greater transparency in the verification process. Supporters argue the data is necessary to track progress toward ballot qualification requirements. The decision could influence the campaign’s strategy as it works to secure a spot on the 2026 ballot.

Florida appeals court allows state to reject 70,000 signatures for 2026 legalization proposal
A Florida appeals court ruled that the state can reject roughly 70,000 signatures tied to a 2026 cannabis legalization initiative. The decision upheld the state’s authority to invalidate petitions that did not meet certain legal or procedural requirements. The ruling represents a setback for advocates trying to qualify the measure for the ballot. Campaign organizers must now gather additional valid signatures to meet the threshold.

SAM contributes $1.55 million to Massachusetts cannabis prohibition campaign
Smart Approaches to Marijuana (SAM), a national anti-legalization group, contributed $1.55 million to a Massachusetts campaign aimed at restricting or rolling back cannabis policies. The funding is intended to support advocacy and messaging against legalization or expansion efforts in the state. The move signals continued organized opposition to cannabis reform even in established legal markets. It also highlights the role of well-funded advocacy groups in shaping state-level cannabis policy debates.

Wondering what a Tier 1, Tier 2 or Tier 3 CRB is?

See our seminal ACAMS Today white paper, Defining “Marijuana-Related Business,” and its update, Defining “Cannabis-Related Business”.

Wondering what a Tier 1, Tier 2 or Tier 3 DARB is?

See our seminal ACAMS Today white paper Defining ‘Digital Asset-related Business’ and Digital-Asset Related Businesses – What Financial Institutions Need to Know