Company Announcements

Reclassification Eases Barriers to Research and Removes Punitive 280E Tax Burden 

TALLAHASSEE, Fla. , Dec. 18, 2025 /CNW/ -- Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) ("Trulieve" or "the Company"), a leading and top-performing cannabis company in the U.S., applauds action taken by the Trump Administration to reclassify marijuana to Schedule III under the Controlled Substances Act.

"This bold and historic direction from President Trump represents long overdue change and a major milestone in cannabis reform," said Trulieve Chief Executive Officer Kim Rivers. "Trulieve is grateful for the decisive action taken by the Administration that acknowledges the medical benefits of cannabis, supports licensed and regulated operators, and allows law enforcement agencies to prosecute bad actors. We are committed to supporting the Administration throughout this process."

Reclassification of marijuana to Schedule III does not legalize marijuana but it is an important first step in achieving practical common sense cannabis reform. Moving marijuana to Schedule III opens the door for more robust research of medical marijuana, removes the punitive tax burden imposed by Section 280E of the tax code, and retains flexibility for law enforcement to target and punish illicit operators.

Eases Barriers to Conducting Critical Medical Marijuana Research  
Reclassifying marijuana to Schedule III acknowledges the medical benefits of marijuana and eases restrictions on conducting medical research in the U.S. In recent years, cutting edge research on the properties and benefits of marijuana has primarily been conducted in other countries with fewer restrictions on research. With this change, American companies and universities can take the lead with research designed to delineate medical applications as well as appropriate dosages and form factors for various patient populations including veterans and seniors.

Removes Punitive 280E Tax Burden Imposed on State Legal Cannabis Operators
Section 280E of the tax code was implemented to prohibit drug traffickers selling Schedule I or Schedule II substances from taking tax deductions for ordinary business expenses. The adoption of Section 280E preceded state legal marijuana programs and thus did not explicitly differentiate between drug traffickers such as foreign cartels and licensed operators subject to strict oversight by state regulators. By definition, Section 280E does not apply to Schedule III substances. Removing the 280E tax burden effectively supports state legal operators who provide patients and adults tested, labeled, and age-gated cannabis products.   

Aligns With Broader Commitment to Stopping Illegal Operators and Foreign Cartels
Rescheduling marijuana applies common sense to cannabis reform by recognizing the difference between marijuana and dangerous drugs such as heroin and synthetic fentanyl. Rescheduling does not legalize marijuana. Law enforcement agencies retain the authority to aggressively target illicit operators, protect our communities from illegal drugs crossing our borders, and prosecute bad actors selling marijuana to children.   

About Trulieve
Trulieve is an industry leading, vertically integrated cannabis company and multi-state operator in the U.S., with leading market positions in Arizona, Florida, and Pennsylvania. Trulieve is poised for accelerated growth and expansion, building scale in retail and distribution in new and existing markets through its hub strategy. By providing innovative, high-quality products across its brand portfolio, Trulieve delivers optimal customer experiences and increases access to cannabis, helping patients and customers to live without limits. Trulieve is listed on the CSE under the symbol TRUL and trades on the OTCQX market under the symbol TCNNF. For more information, please visit Trulieve.com.

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Investor and Media Contact
Christine Hersey, Vice President of Investor Relations
+1 (424) 202-0210
Christine.Hersey@Trulieve.com

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SOURCE Trulieve Cannabis Corp.