AdvisorShares Issues Statement on Finalization of Federal Cannabis Rescheduling

Rhea-AI Summary

AdvisorShares (MSOS) responded to the Department of Justice's April 23, 2026 final reclassification of cannabis to Schedule III under the Controlled Substances Act. AdvisorShares called rescheduling an industry inflection point, citing potential access to research, capital, relief from punitive tax treatment, and increased institutional participation. The firm noted the industry employs over 400,000 Americans and highlighted its MSOS, YOLO, and MSOX ETFs managed by Dan Ahrens.

Positive

• Federal rescheduling to Schedule III
• U.S. cannabis industry employs more than 400,000 Americans
• MSOS identified as the largest U.S.-listed cannabis ETF

Negative

• AdvisorShares states rescheduling does not instantly solve every challenge
• Cannabis-related investments remain subject to regulatory, taxation, and licensing risks

Key Figures

Current price: $5.11 1-day move: 19.39% Volume today: 55,312,202 shares +5 more

8 metrics

Current price $5.11 Price before the cannabis rescheduling statement

1-day move 19.39% 24h price change prior to publication

Volume today 55,312,202 shares Trading volume on news day

20-day avg volume 9,637,959 shares Average volume over last 20 days

52-week high $7.25 Pre-news 52-week high level

52-week low $2.06 Pre-news 52-week low level

200-day MA $4.19 Longer-term trend reference for MSOS

Industry employment 400,000+ workers U.S. cannabis industry employment cited in release

Market Reality Check

Price: $4.22 Vol: Volume 55,312,202 is 5.74...

high vol

$4.22 Last Close

Volume Volume 55,312,202 is 5.74x the 20-day average of 9,637,959, signaling heavy pre-news positioning. high

Technical Trading above its 200-day MA of 4.19, with price at 5.11 ahead of the rescheduling statement.

Peers on Argus

No peers with momentum or same-day headlines were provided, so the +19.39% move ...

No peers with momentum or same-day headlines were provided, so the +19.39% move in MSOS appears stock-specific in the context of this data.

Historical Context

1 past event · Latest: Dec 18 (Positive)

Pattern 1 events

Date	Event	Sentiment	Move	Catalyst
Dec 18	Federal policy statement	Positive	-0.2%	AdvisorShares response to Executive Order advancing federal cannabis rescheduling efforts.

Pattern Detected

Limited history shows one prior federal cannabis policy statement that was positive in tone but followed by a slight negative price reaction, suggesting past divergence between narrative and price.

Recent Company History

On Dec 18, 2025, AdvisorShares issued a statement on a Presidential Executive Order to advance cannabis reclassification, highlighting potential impacts on taxation, research access, and capital formation for U.S. cannabis companies and more than 400,000 workers. MSOS, described as the largest U.S. cannabis ETF, saw a -0.2% 24-hour reaction, a mild divergence from the constructive policy tone. Today’s news marks the Department of Justice’s final action to reclassify cannabis to Schedule III, advancing the same policy trajectory.

Market Pulse Summary

This announcement framed the Department of Justice’s move to reclassify cannabis to Schedule III as ...

Analysis

This announcement framed the Department of Justice’s move to reclassify cannabis to Schedule III as a structural shift for U.S. operators, potentially affecting tax treatment, research access, and capital formation. MSOS was already trading above its 200-day MA of 4.19 and well off its 52-week low of 2.06 prior to publication. Investors tracking this theme may focus on how future banking access, licensing stability, and federal–state alignment evolve from this new baseline.

Key Terms

exchange-traded funds, etf, schedule iii, controlled substances act, +3 more

7 terms

exchange-traded funds financial

"AdvisorShares, a leading sponsor of actively managed exchange-traded funds (ETFs)"

An exchange-traded fund is an investment product that bundles many stocks, bonds, or other assets into a single package that trades on a stock exchange like an individual share; think of it as a ready-made basket you can buy or sell throughout the trading day. For investors it matters because ETFs provide easy access to broad exposure, typically lower costs and built-in diversification, and the ability to adjust positions quickly without buying each asset separately.

etf financial

"portfolio manager of the AdvisorShares Pure US Cannabis ETF (MSOS)"

An ETF, or exchange-traded fund, is like a basket of different investments such as stocks or bonds that you can buy or sell easily on the stock market, just like a regular share. It allows people to invest in many companies at once, making it a simple way to grow savings without picking individual stocks.

schedule iii regulatory

"final action reclassifying cannabis to Schedule III under the Controlled Substances Act"

A Schedule III classification is a regulatory category for drugs and substances that have a recognized medical use but a moderate risk of dependence or abuse, placing them between higher-risk controlled drugs and over-the-counter medicines. For investors, this matters because it shapes how a product can be manufactured, prescribed, marketed and distributed — affecting potential sales, regulatory hurdles, labeling requirements and legal exposure in the market; think of it as a middle level of control that influences commercial access and compliance costs.

controlled substances act regulatory

"reclassifying cannabis to Schedule III under the Controlled Substances Act"

A federal law that creates the rules for which drugs and chemicals are legal, how they are classified by risk, and what licenses and controls are required for manufacture, distribution, research, and medical use. For investors, these classifications act like traffic signals — they determine how easy or hard it is for companies to develop, sell, or research certain medications and can sharply affect a company’s regulatory cost, market access, and legal risk.

leveraged etf financial

"AdvisorShares MSOS Daily Leveraged ETF (Ticker: MSOX), which provides leveraged exposure"

A leveraged ETF is an exchange-traded fund that uses borrowing and financial contracts to amplify the daily movement of an underlying index by a fixed multiple (for example, 2x or -1x), and it resets its exposure each trading day. It matters to investors because it can magnify both gains and losses quickly—useful for short-term trading or hedging but riskier for buy-and-hold investors due to compounding and volatility effects, like using a seesaw with extra force.

prospectus regulatory

"This and other information is in the prospectus, which may be obtained"

A prospectus is a detailed document that explains a company's plans for offering new shares or investments to the public. It’s important because it provides potential investors with key information about the company’s business, risks, and how they might make money, helping them decide whether to invest. Think of it as a guidebook for understanding what you're buying into.

nav financial

"Shares are bought and sold at market price (not NAV) and are not individually redeemed"

Net asset value (NAV) is the total value of all the investments and assets in a fund or company, minus any debts or liabilities, divided by the number of shares or units outstanding. It represents the per-share worth, giving investors an idea of what each share is truly worth based on the underlying assets. Think of it like a company's total worth divided among its shares, helping investors assess whether a share is fairly priced.

AI-generated analysis. Not financial advice.

MSOS portfolio manager calls action an inflection point for the U.S. cannabis industry

BETHESDA, Md., April 23, 2026 /PRNewswire/ -- AdvisorShares, a leading sponsor of actively managed exchange-traded funds (ETFs) and the largest asset manager of U.S. and global cannabis stocks, today issued the following statement in response to the Department of Justice's final action reclassifying cannabis to Schedule III under the Controlled Substances Act.

"This is the moment the U.S. cannabis industry has been building toward for many decades," said Dan Ahrens, managing director at AdvisorShares and portfolio manager of the AdvisorShares Pure US Cannabis ETF (MSOS). "Finalizing rescheduling moves cannabis out of a policy gray area and firmly into a regulated framework. That shift matters not just symbolically, but fundamentally for operators, employees, consumers, and investors alike."

Ahrens continued, "This action does not instantly solve every challenge facing the industry, but it removes one of the most significant structural barriers. By enabling relief from punitive tax treatment and expanding access to research, capital, and institutional participation, rescheduling represents the true starting point for cannabis to function as a normalized U.S. industry."

The reclassification marks a critical transition for an industry that employs more than 400,000 Americans and operates across a majority of U.S. states. These U.S. citizens have frequently been de-banked and have lost or been declined car loans and mortgages. With federal policy now aligned more closely with medical adoption, state-level legalization, and economic reality, many market participants view this step as a foundation for further reform, including improved banking access and clearer regulatory oversight.

The AdvisorShares Pure US Cannabis ETF (Ticker: MSOS) is an actively managed ETF focused primarily on U.S. cannabis companies, including leading multi-state operators. MSOS was the first U.S.-listed ETF to provide dedicated exposure to U.S. cannabis companies and remains the largest ETF in the category.

AdvisorShares also offers the AdvisorShares Pure Cannabis ETF (Ticker: YOLO), an actively managed global cannabis strategy, and the AdvisorShares MSOS Daily Leveraged ETF (Ticker: MSOX), which provides leveraged exposure to the U.S. cannabis stocks designed for day traders. All three funds are managed by Mr. Ahrens.

"From an investment perspective, rescheduling is not the end of the story—it is the beginning," Ahrens added. "It establishes the conditions under which fundamentals, not federal uncertainty, can begin to drive valuations."

For more information, please visit www.advisorshares.com.

About AdvisorShares

AdvisorShares is a leading provider of actively managed ETFs, delivering differentiated investment solutions across equities, alternatives and thematic strategies. Financial professionals and investors seeking more information may call 1-877-843-3831 or visit advisorshares.com.

Each weekday at 12:00 pm ET, AdvisorShares hosts the live AlphaNooner webcast, featuring timely discussions on markets, portfolio construction, and emerging investment themes, including cannabis. Viewers can watch and engage live via X, LinkedIn, Facebook and YouTube.

Before investing you should carefully consider the Fund's investment objectives, risks, charges and expenses. This and other information is in the prospectus, which may be obtained by visiting the Fund's website at www.AdvisorShares.com. Please read the prospectus and summary prospectus carefully before investing. Foreside Fund Services, LLC, distributor.

An investment in the Funds is subject to risk, including the possible loss of principal. Cannabis-related investments are subject to additional risks, including regulatory risk, market volatility, and risks related to taxation, licensing, and changing federal and state laws. Shares are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Additional risk information is available in each Fund's prospectus.

Cannabis-Related Company Risk – Cannabis-related companies are subject to various laws and regulations that may differ at the state/local and federal level. These laws and regulations may (i) significantly affect a cannabis-related company's ability to secure financing, (ii) impact the market for marijuana industry sales and services, and (iii) set limitations on marijuana use, production, transportation, and storage. Cannabis-related companies may also be required to secure permits and authorizations from government agencies to cultivate or research marijuana. In addition, cannabis-related companies are subject to the risks associated with the greater agricultural industry, including changes to or trends that affect commodity prices, labor costs, weather conditions, and laws and regulations related to environmental protection, health and safety. Cannabis-related companies may also be subject to risks associated with the biotechnology and pharmaceutical industries. These risks include increased government regulation, the use and enforcement of intellectual property rights and patents, technological change and obsolescence, product liability lawsuits, and the risk that research and development may not necessarily lead to commercially successful products.

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SOURCE AdvisorShares

FAQ

What did the DOJ decision on April 23, 2026 mean for MSOS (AdvisorShares Pure US Cannabis ETF)?

Direct answer: The DOJ reclassified cannabis to Schedule III, which AdvisorShares says is an inflection point for MSOS investors. Supporting context: According to AdvisorShares, rescheduling may expand research access, capital, and institutional participation while not immediately resolving all industry challenges.

How does the Schedule III reclassification affect banking and taxes for U.S. cannabis companies and MSOS holdings?

Direct answer: AdvisorShares says rescheduling enables potential relief from punitive tax treatment and could improve banking access. Supporting context: According to AdvisorShares, the change aligns federal policy with state legalization and may pave the way for clearer regulatory and financial services access over time.

Does AdvisorShares say rescheduling immediately normalizes the U.S. cannabis industry for MSOS investors?

Direct answer: No — AdvisorShares explicitly states rescheduling is a beginning, not an instant fix. Supporting context: According to AdvisorShares, the action removes a major structural barrier but industry participants still face remaining regulatory, licensing, and operational challenges.

What ETFs does AdvisorShares manage that provide cannabis exposure and which ticker covers U.S. names?

Direct answer: AdvisorShares manages MSOS for U.S. cannabis exposure, YOLO for global cannabis, and MSOX for leveraged U.S. exposure. Supporting context: According to AdvisorShares, MSOS was the first U.S.-listed ETF dedicated to U.S. cannabis companies and remains the largest in the category.