AdvisorShares Issues Statement on Finalization of Federal Cannabis Rescheduling

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