FLUENT Cannabis Applauds Historic Federal Rescheduling of Cannabis

Executive Summary

• The U.S. federal government has rescheduled cannabis from Schedule I to Schedule III under the Controlled Substances Act, a landmark policy shift recognizing its medical use.
• Schedule III status removes many federal barriers for FLUENT, including 280E tax restrictions, improving access to banking and allowing ordinary business expense deductions.
• The change is expected to reduce unlicensed competition, ease pricing pressure, and create growth opportunities in key markets such as Florida and Texas.

Key Details

• Federal rescheduling announced on Dec 18 2025; cannabis moves from Schedule I to Schedule III.
• Recognizes accepted medical use of cannabis and enables “280E relief,” allowing deduction of ordinary business expenses previously disallowed.
• Anticipated benefits for FLUENT:
• Improved access to banking services.
• Ability to deduct ordinary operating costs, freeing capital for patient care, product innovation, and market expansion.
• Company expects reduced unlicensed competition and lower pricing pressure enterprise‑wide, with the greatest impact in Florida and potential expansion into Texas.
• FLUENT’s Interim CEO David Vautrin highlighted the policy shift as “pivotal” for patients, operators, and investors while noting ongoing work on state‑federal law alignment and broader criminal‑justice reforms.
• The rescheduling follows a November 12 2025 federal clarification regarding hemp‑derived intoxicants; related regulations will phase out unlicensed hemp‑derived cannabis by Nov 2026.

Notable Quotes

“Federal rescheduling is a pivotal moment for patients, operators, and investors,” – David Vautrin, Interim CEO, FLUENT Corp.
“While rescheduling represents meaningful progress, there remains important work ahead to fully resolve the conflict between state and federal law and to advance broader criminal justice reforms.” – David Vautrin