The cannabis industry entered 2026 with something it hasn't had in years: momentum. Fueled by President Trump's December 18, 2025 executive order to reschedule marijuana from Schedule I to Schedule III, a flurry of acquisitions, debt restructurings, and strategic pivots are reshaping the competitive landscape — and we're not even out of Q1.

The most talked-about brand deal of early 2026 is Oregon-based Wyld's acquisition of fellow Oregonian edibles maker Grön. The move brings together two of the most recognized names in the $4.8 billion cannabis edibles category. Combined, the companies now employ roughly 1,400 people and reach approximately 12,000 retail locations across the U.S. and Canada. Wyld, already available in 16 states, gains Grön's 75-product lineup and nine-state footprint. Grön, for its part, gains the resources and distribution muscle to scale nationally. The deal positions the combined entity as arguably the most dominant force in cannabis edibles today.

In a deal that sent shockwaves through the industry, Millstreet Credit Fund acquired Cannabist's Virginia cannabis assets for $130 million in a loan-to-own transaction. What makes this significant isn't just the price tag — it's who's buying. Millstreet is a credit fund, not a traditional multi-state operator (MSO). The message? Lenders are now competing directly with cannabis companies for prime assets, signaling that debt — not equity — may drive the next wave of industry consolidation.

Not every story in early 2026 is one of strength. Ayr Wellness has had a rough start to the year, losing assets to foreclosure in both New Jersey and Ohio. The company's shrinking footprint serves as a cautionary tale about overleveraged cannabis businesses facing debt maturities with no clear exit. More state-level asset transfers from Ayr are expected as regulatory approvals move forward.

Two of the industry's biggest MSOs made major financial moves in February. Green Thumb Industries secured an additional $50 million in senior debt financing, while Curaleaf closed a $500 million private placement of 11.5% senior secured notes due 2029. Both moves signal confidence in the long-term direction of federal policy — and a desire to be well-capitalized when rescheduling is fully finalized.

In a sign of the times for the Golden State, Planet 13 completed its exit from California, selling its assets to Catalyst Cannabis. With wholesale prices in some markets down as much as 67% from their peak, it's becoming increasingly difficult for large publicly traded MSOs to compete against leaner, lower-cost local operators. California isn't going away — but it's increasingly a market for scrappy independents, not big brands burning overhead.

The short answer: debt, rescheduling optimism, and survival instincts. Companies with clean balance sheets are snapping up distressed assets at compressed valuations. Lenders are converting debt to ownership. And brands that built market dominance — like Wyld — are using this window to lock in long-term category leadership before the next wave of national competition arrives.

The big wildcard remains Section 280E. If rescheduling is finalized, cannabis companies will finally be able to deduct standard business expenses — a change that could slash effective tax rates from 70%+ down to normal business levels. That single shift could unlock billions in capital and trigger a deal wave that makes early 2026 look like a warm-up.