LEEF Brands CEO on Killing Debt Before 2026
Is cleaning up debt now the real edge for cannabis companies heading into 2026? In this episode of TDR Trade to Black, hosts Shadd Dales and Anthony Varrell sit down with Micah Anderson, CEO of LEEF Brands (CSE: LEEF, OTCQB: LEEEF), to talk about one of the biggest moves a cannabis company can make right now: aggressively cleaning up the balance sheet.
On tap for today: LEEF Brands’ decision to retire $10.5 million in debenture debt ahead of its 2027 maturity. Anderson explained that the company had already been through one extension process with debenture holders and did not want to repeat it.
With LEEF Brands now generating operating profits and executing successfully on its California cultivation and extraction strategy, management chose to remove the overhang early rather than continue servicing high-interest debt. Eliminating the debentures removes over $1 million annually in interest expense and significantly strengthens the company’s financial profile.
Anderson emphasized that he personally converted his own debentures on the same terms as other holders, reinforcing alignment with shareholders. He noted that consolidation across the cannabis sector is inevitable and that clean balance sheets will be essential for future M&A opportunities. Removing legacy debt, he said, makes LEEF Brands a more attractive partner as consolidation accelerates.
With debt largely behind them, LEEF Brands plans to focus capital on completing the build-out of its California farm, scaling operations in New York, and evaluating additional markets. Anderson outlined that the company’s model depends on large-scale outdoor cultivation paired with extraction, making states like Nevada, Missouri, and potentially Florida interesting targets, while indoor-heavy markets are less attractive.
New York was highlighted as a key growth driver, with Anderson describing strong demand and favorable regulatory conditions compared to California. He contrasted New York’s business-friendly approach with California’s high taxes, complex permitting, and regulatory burdens, which he argued continue to stifle licensed operators despite consolidation opportunities.
Looking ahead, Anderson acknowledged risks, particularly the variability inherent in farming and the capital required to scale infrastructure, but expressed confidence that LEEF Brands is now positioned to grow organically and strategically in 2026 with far greater flexibility.
