SUBSEQUENT EVENTS |
3 Months Ended | ||||||
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Mar. 31, 2026 | |||||||
| Subsequent Events [Abstract] | |||||||
| SUBSEQUENT EVENTS |
Federal Cannabis Rescheduling
On April 28, 2026, the U.S. Department of Justice issued a rule in the Federal Register reclassifying certain state-licensed medical marijuana products and FDA-approved marijuana products from Schedule I to Schedule III under the Controlled Substances Act. The action does not federally legalize recreational cannabis or broadly legalize marijuana-related activities, but it represents a significant shift in federal cannabis policy and may facilitate expanded medical research, product development and potential changes in tax treatment for qualifying operators.
The Company is evaluating the potential impact of these developments on its business, including implications for federal income tax treatment under Section 280E of the Internal Revenue Code. However, the scope, timing and applicability of any resulting benefits remain uncertain and may depend on future rulemaking, enforcement priorities, judicial developments and additional federal or state regulatory actions.
While the Company believes these developments could create long-term opportunities for the regulated cannabis industry, no assurance can be provided regarding the extent to which such actions will materially affect its financial condition, results of operations or liquidity.
Proposed Continuance from British Columbia to Nevada On April 24, 2026, the Company announced its intention to seek shareholder approval of a proposed arrangement (the "Arrangement") which involves, among other things, the continuance of the Company out from the province of British Columbia, Canada and the concurrent domestication of the Company in the State of Nevada in the United States (the "Continuance"). To become effective, the Arrangement must be approved by 66 2/3% of the votes cast by shareholders at the Company’s annual general and special meeting of the shareholders. If approved by the shareholders, the Arrangement, including the Continuance, is not expected to cause any material change in the Company's business or operations.
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