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SOTM Update 2025-12-16

Picture of AdvisorShares By   ·  4 minute read
Today's Stocks on the Move is for MSOS – AdvisorShares Pure US Cannabis ETF and its holdings in Verano Holdings (VRNA), Curaleaf Holdings (CURLF), Green Thumb (GTBIF), Trulieve Cannabis (TCNNF), and Cresco Labs (CRLBF). Together, these holdings comprise over 80% of MSOS portfolio weight.
 
Verano Holdings Corp. (VRNO) – 5.97% Weight
  • Recent news: Verano was awarded a conditional Dispensing Organization License in Texas, positioning it to cultivate, process, and dispense medical cannabis statewide once final approval is granted, significantly expanding its footprint into the second‑largest U.S. state. The company also secured a new $75 million revolving credit facility, drawing $50 million to retire an equivalent amount of older secured debt, which improves liquidity and extends its debt ladder even as insiders continue to file modest planned share sales.
  • Why it matters for MSOS: VRNO’s entry into Texas and refinancing progress strengthen its long‑term growth and balance‑sheet profile, giving MSOS added leverage to one of the sector’s more operationally disciplined MSOs at a moment when scale and access to capital are critical.
Curaleaf Holdings, Inc. (CURLF) – 27.56% Weight
  • Recent news: Curaleaf remains the best‑performing large cannabis stock this year, up more than 120% year‑to‑date as investors price in U.S. rescheduling and the company’s push into Europe and Australia. Q3 2025 revenue of $320 million fell slightly year over year on price compression, but adjusted gross margin improved to 50% and free‑cash‑flow forecasts now call for a rise from roughly $77 million in 2025 to about $540 million by 2029, supported by restructuring, international growth, and the pending acquisition of The Cannabist Company’s Virginia assets.
  • Why it matters for MSOS: As MSOS’s largest holding, CURLF is a key engine of performance; its scale, improving margins, and expanding global footprint make it one of the clearest beneficiaries of any U.S. federal easing and of rising institutional interest in the space.
Green Thumb Industries Inc. (GTBIF) – 19.21% Weight
  • Recent news: Green Thumb reported Q3 2025 revenue of about $291 million, up 1.6% year over year, with net income of roughly $23 million, adjusted EBITDA of $80 million (27.5% margin), and operating cash flow of about $74 million, leaving it with more than $220 million in cash. Management also authorized a $50 million share‑repurchase program and expanded adult‑use sales in markets like Minnesota, underscoring confidence in long‑term demand despite price compression and regulatory uncertainty.
  • Why it matters for MSOS: GTBIF offers MSOS one of the sector’s cleanest balance sheets and most consistent profit profiles, helping stabilize portfolio risk while still providing upside to growth in newly legalized adult‑use markets.
Trulieve Cannabis Corp. (TCNNF) – 22.99% Weight
  • Recent news: Trulieve just secured commitments for a $100 million private placement of 10.5% senior secured notes due 2030 and has redeemed all $368 million of its 8.0% notes due 2026, pushing out maturities at the cost of a higher coupon and creating a sizable but manageable medium‑term interest burden. The company continues to stress its strong cash‑flow generation and Florida leadership position as it reallocates capital to higher‑return projects and navigates a still‑tight credit environment for U.S. plant‑touching operators.
  • Why it matters for MSOS: TCNNF remains a top MSOS weight because its financing moves de‑risk near‑term refinancing while preserving growth capacity in core markets like Florida, positioning Trulieve to benefit disproportionately from tax relief and increased capital access if rescheduling advances.
Cresco Labs Inc. (CRLBF) – 6.35% Weight
  • Recent news: Cresco Labs reported Q3 2025 revenue of about U$165 million with adjusted gross margin just under 49% and adjusted EBITDA near $40 million, while still posting a net loss driven by debt‑related and impairment charges. The company is restructuring by exiting most California operations, focusing on higher‑margin core states, and refinancing its senior debt with a new $325 million five‑year term loan that lowers near‑term maturity risk and allows prepayment of up to $125 million at a reduced premium; analysts have responded with rating upgrades as trading volume spikes.
  • Why it matters for MSOS: CRLBF gives MSOS exposure to a turnaround story where operational refocusing and a cleaner liability stack could translate into substantial equity upside if execution in core markets and industry conditions continue to improve.
 
Data as of 12/15/2025. Holdings subject to change. For a list of MSOS's holdings, click here.
EBITDA – earnings before interest, taxes, depreciation, and amortization.
 
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