Curaleaf to ring opening bell at TSX to mark stock listing

As the U.S.’s largest legal cannabis company based on revenue and market capitalization, Curaleaf works in medical and recreational cannabis programs in 17 states with 147 dispensaries and more than 5,200 team members.

However, under Nasdaq and NYSE listing rules, Curaleaf is not allowed to trade its stock because cannabis remains a Schedule I controlled substance under U.S. law.

Curaleaf’s stock will be de-listed from the Canadian Securities Exchange as of the close of trading on Wednesday.

The U.S. Drug Enforcement Administration is expected to rule on a recommendation from the U.S. Department of Health and Human Services to re-schedule cannabis as a Schedule III drug, which allows medical use under federal law. It’s not clear when the DEA will act on the recommendation.

Also read: HHS recommends rescheduling cannabis, and stocks in the sector rally

Curaleaf is the second U.S. cannabis company to list on the Toronto Stock Exchange after TerrAscend’s listing
TSNDF,
+4.58%

TSND,
+3.93%
over the summer.

Prior to Wednesday’s trades, Curaleaf stock was down 17.6% in 2023, compared to a 12.7% drop by the AdvisorShares Pure U.S. Cannabis ETF
MSOS,
+2.46%.

In another listing development in the cannabis space, Canadian cannabis company Canopy Growth Corp.
CGC,
-24.45%

WEED,
-23.12%
said it’s on track to consolidate its shares in order to meet its Nasdaq listing requirements.

Canopy Growth said Wednesday it will count one post-consolidation share for every pre-consolidation shares.

The consolidation is is expected to become effective on Dec. 15, pending approval by the TSX.

Shareholders OK’d the plan at a special meeting on Sept. 25.

Canopy Growth Chief Executive David Klein said the consolidation will “enhance the marketability of our shares” after work to strengthen its balance sheet and introduce its Canopy USA structure to hold its U.S. businesses.

Canopy Growth’s stock was down by 21% on Wednesday to 55 cents a share.

Also read: Curaleaf Executive Chairman Boris Jordan on U.S. de-scheduling and moving his stock to the TSX