Welcome to Senior Cannabis Digest. This week we look at what rescheduling means for investors, cannabis consumption in a state where it’s illegal, a comment on cannabis from the new nominee for Surgeon General and more. Enjoy.
Investor News and Notes
Top takeaway: Eliminating section 280E of the tax code and the possibility of exchange “up listing” are the leading benefits of cannabis rescheduling for investors.
According to an investor guide prepared by CannabisMarketcap, federal rescheduling of cannabis from Schedule I to Schedule III of the Controlled Substances Act has the potential to be a transformative catalyst for cannabis stocks.
The guide contends that two significant consequences of rescheduling are the elimination of the restrictions placed on cannabis companies by section 280 E of the tax code and the chance for exchange uplisting.
Under section 280E, as it is currently written, cannabis companies pay effective tax rates of 60 to 80 percent due to the inability to deduct ordinary business expenses. Moving to Schedule III removes this restriction because 280E only applies to Schedule I and Schedule II drugs.
For the largest cannabis companies this could mean increased cash flow and significant savings, both of which could contribute to profitability.
Many believe rescheduling would also increase the likelihood cannabis stocks could be listed on the New York Stock Exchange and NASDAQ, a process often referred to as “exchange uplisting.”
Such a move could present an opportunity for increased liquidity stemming from increased visibility and trade volume, the inclusion of cannabis stocks in broader indices and the involvement of institutional investors that are prohibited from investing in OTC stocks.
According to the guide, this potential increase in capital inflow from institutional investors could have the largest impact on stock prices. At present, many institutional investors — pension funds, endowments, large mutual funds, registered investment advisors — cannot invest in cannabis due to federal illegality concerns.
Rescheduling would remove or reduce this barrier, “potentially unlocking billions of dollars in new investment demand for a sector with relatively small market capitalization.”
The analysts at CannabisMarketCap contend that the largest market cap cannabis companies are best positioned to benefit, as institutional investors typically start with the most liquid, well-known names in a sector.
CannabisMarketCap is a service of CompaniesMarketCap.com, a company that provides real-time data on over 10,000 companies, ranked by market capitalizations. A link to its guide to rescheduling for investors follows. The guide was written prior to the Trump administration’s decision to reschedule cannabis.
Notable Numbers
Top takeaway: Indiana residents spend approximately $2 billion a year on cannabis, even though recreational and medical cannabis are illegal there.
Legal or not, the folks in Indiana are expressing their opinion on recreational cannabis by voting with their wallets.
According to a RAND study commissioned by the Richard M. Fairbanks Foundation, Indiana residents spend nearly $2 billion on cannabis annually, despite the fact neither medical nor adult-use cannabis is legal in the state.
That’s the word from TG Branfalt, reporting for Ganjapreneur. According to Branfalt, the report indicates that the state currently spends between $10 million and $20 million per year to enforce its cannabis laws. At the same time, it’s projected that cannabis-derived revenues could reach as much as $180 million annually. That’s roughly 1 percent of the state’s General Fund.
Branfalt also reports that the study found about 1.3 million Indiana residents aged 12-or-older used cannabis within the past year and about 433,000 told researchers they use cannabis daily or weekly.
The Rand report points out that three out of four of Indiana’s neighboring states – Illinois, Michigan, and Ohio – have legalized cannabis for adult use. This has led to an estimated 44 percent of Indiana residents living within a 50-mile drive to a licensed dispensary across state lines and another 96 percent living within 100 miles of a licensed dispensary in another state.
Branfalt also noted that the report acknowledged that despite Indiana having the “most restrictive” cannabis laws in the nation, intoxicating hemp products are “widely available” throughout the state.
As always, TG Branfalt’s reporting is first rate. To learn more, you can read his article in the April 30, 2026 issue of Ganjapreneur.com.
Cannabis Quote of the Week
Top takeaway: The rescheduling train may be leaving the station, but not everyone is on board.
“Physically, we know that marijuana is directly linked to breathing problems (if smoked), cardiovascular disease and gynecomastia (“man boobs”). As a breast radiologist, the first question I ask men when they come in because of enlarging breasts is whether they currently smoke marijuana or have smoked it in the past. Many times, the answer is ‘yes.’” – Dr. Nicole Saphier
Dr. Saphier currently serves as director of breast imaging at Memorial Sloan Kettering and has been nominated by President Trump to serve as Surgeon General of the United States.
According to Tom Angell, reporting for Marijuana Moment, Dr. Saphier’s comment comes from an op-ed she penned several years ago. To be fair, she has stated that she thinks there may be some medical benefits associated with the use of CBD.
Science marches on. More news as more news develops.
For a more detailed discussion of Dr. Saphier’s views on cannabis, we urge you to read Tom Angell’s article in the April 30, 2026 issue of Marijuana Moment.net.
Cannabis and Culture
Top takeaway: Researchers believe cannabis was “deeply integrated into daily life in ancient China.”
A new study offers clear evidence that humans used cannabis long before Woodstock, the Beat Generation and the Jazz Age – and that use wasn’t limited to North or South America.
The study, which was published in the Journal of Archaeological Science, places cannabis among “the five grains” (alongside rice and barely, for example) that were foundational to the ancient Chinese economy, stating it was “deeply integrated into the daily lives of the inhabitants.”
So says Kyle Jaeger, writing for Marijuana Moment. Jaeger reports that researchers at Shandong University analyzed 132 samples found in settlements that dated back to the Late Neolithic era. The results showed that, by that point, cannabis had become a “core crop in northern China, primarily used for food or fiber.”
The term “Late Neolithic Era” refers to a period around 4500 to 2000 BCE that precedes the Bronze Age and is said to be characterized by advancements in agriculture and pottery and the development of social structures and trade networks.
In his article, Jaeger makes the point that the researchers found evidence of “daily seed processing and consumption activities at the household level,” solidifying the status of cannabis as one of the foundational ‘five grains’ (rice, millet, barley, soybean, and cannabis) of that period.
Jaeger also noted that a 2023 paper in the European Journal for Chemistry traced the history of the crop through “thousands of years of contact with mankind,” noting the plant’s legacy as a source of fiber, nutrition, medicine, spirituality and pleasure.
To learn more, we urge you to read Kyle Jaeger’s article in the April 8, 2026 issue of Marijuana Moment.net.
Senior Cannabis Digest is compiled and edited by Joe Kohut and John Kohut. You can reach them at joe.kohut@gmail.com and at 347-528-8753.