LEEF Brands Comments on Federal Cannabis Rescheduling and Potential to Participate in Nationwide CBD Program

Executive Summary

• The U.S. President issued an executive order reclassifying cannabis from Schedule I to Schedule III under the Controlled Substances Act.
• Re‑scheduling eliminates the 280E tax burden for LEEF Brands, which is expected to improve cash flow and lower cost of capital.
• LEEF highlights additional strategic opportunities tied to emerging federal initiatives on hemp‑derived cannabinoids and potential Medicare coverage for CBD products.

Key Details

• Executive Order: Cannabis moved from Schedule I to Schedule III, removing the most restrictive federal classification.
• Tax Impact: Removal of 280E tax provision anticipated to materially improve LEEF’s cash flow and enable reinvestment in facilities and growth initiatives.
• Capital Access: CFO Kevin Wilson notes that clearer regulation should broaden institutional investor participation, increase lender options, and reduce overall cost of capital for the cannabis sector.
• Growth Outlook: Improved regulatory environment expected to provide “meaningful opportunities” to fund expansion, infrastructure upgrades, and scaling of operations.
• Hemp‑Derived Cannabinoid Monitoring: LEEF is tracking federal developments on hemp‑derived cannabinoids and a CMS pilot program that could allow Medicare patients access to CBD products as early as 2026.
• Strategic Assets: The company holds a dormant 100‑acre hemp permit at Salisbury Canyon Ranch and operates a high‑purity extraction platform, offering optionality as hemp regulations evolve.

Notable Quotes

“Cannabis rescheduling is a meaningful and long‑awaited step forward for patients, research, and operators,” – Micah Anderson, CEO, LEEF Brands.

“From a financial perspective, rescheduling has the potential to materially improve access to capital across the cannabis industry,” – Kevin Wilson, CFO, LEEF Brands.