After announcing its intentions to do so in May 2023, Curaleaf has now confirmed it aims to list subordinate voting shares on the Toronto Stock Exchange (TSX) in a bid to expand its investor base.

The company stated it “wishes to implement a reorganization of its U.S. cannabis assets” and has explored a number of different ways it could implement the reorganization in order to achieve the listing.

Curaleaf must gain the consent of its shareholders before listing.

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The company stated: “As a result of the Listing, it is anticipated that Curaleaf USA and the Company would be subject to certain restrictions on cash transfers, whereby, amongst other things, (i) the Company would be prohibited from flowing any cash to Curaleaf USA and its U.S. subsidiaries with ongoing business activities that violate U.S. federal law regarding cannabis, and (ii) Curaleaf USA and such U.S. subsidiaries would be prohibited from flowing any cash to the Company, whether by way of dividend or otherwise. However, it is currently expected that Curaleaf USA would have the ability to utilize cash to acquire Notes and/or pay interest directly or on behalf of the Company…”

The announcement followed the recent listing of US and Canadian cannabis operator TerrAscend on the TSX.

Cannabis industry expert and veteran reporter Jeremy Berke suggested the TerrAscend listing could be the start of an influx of US MSOs onto the exchange.

Berke argues that TerrAscend’s ‘coveted’ listing will open the door for other MSOs who are scrambling to trade on major markets with access to larger investors and more liquidity, currently stuck trading on the OTC market or on the secondary Canadian Securities Exchange.

While he warns TerrAscend’s deal is complex and not easily replicable, he says he expects ‘a flood of companies to follow TerrAscend’s footsteps if this works out.