Village Farms International Inc

A federal appeals court has denied a request by two parties seeking to block the Trump administration's plan to reschedule marijuana for medical purposes. The motion came from the National Drug and Alcohol Screening Association and MMJ International Holdings, which argued that marijuana abuse has consequences and that providing tax benefits to cannabis companies will lead to more sales and abuse. The Justice Department said in its brief that the challengers' attempt stemmed from "pocketbook interests served by keeping all marijuana in Schedule I," according to Marijuana Moment. An order signed in April by US Attorney General Todd Blanche would move medical marijuana from Schedule I to Schedule III under the Controlled Substances Act, giving licensed medical marijuana operators tax breaks and easing some barriers to researching cannabis. The ruling clears the way for the rescheduling to proceed, a development relevant to multi-state operators such as Curaleaf Holdings, Cresco Labs, Green Thumb, Trulieve Cannabis, Ayr Wellness, TerrAscend, Verano Holdings and Village Farms International, as well as cannabis-focused ETFs including AdvisorShares Pure Cannabis ETF, ETFMG Alternative Harvest ETF, Amplify Seymour Cannabis ETF and AdvisorShares Pure US Cannabis ETF.

Village Farms International reported record second quarter 2026 cannabis revenue and its fifth consecutive quarter of positive net income and earnings per share. Consolidated net sales rose 7% year-over-year to $64 million, while adjusted EBITDA from continuing operations was $15.4 million, or 24% of sales, compared to $17.1 million a year earlier, with the decline driven by a one-time $4.3 million vendor settlement received in the prior-year quarter. Cannabis segment net sales increased 5% to $53.5 million, international medical exports jumped 74% year-over-year and 43% sequentially, and cannabis gross margin expanded by 900 basis points to 51%. The company ended the first half with approximately $73 million in cash and expects stronger free cash flow in the second half as capital expenditures from its Canadian and Netherlands expansions near completion.