CLS Holdings USA Inc (CLSH)

[cgessler]

Wedbush said: "While cannabis would still remain federally illegal as a Schedule III drug, rescheduling it to a lower Schedule would have significant, industry wide implications, chief among which would be the relief from punitive 280E tax provision, arguably the most penal of all regulatory hurdles facing multi-state operators (MSOs), which effectively requires operators to pay effective tax rates between 60-90%. To be sure, rescheduling cannabis from Schedule I to Schedule III would be materially beneficial from a profitability and cash flow perspective, at a time when all MSOs are focused on cash preservation."