Trulieve Cannabis Corp. became the first U.S. cannabis company approved to list on a major U.S. stock exchange.
The Tallahassee, Florida-based company’s subordinate voting shares are expected to begin trading on the New York Stock Exchange under the ticker symbol TRLV on Wednesday, according to a company announcement made Friday.
“As the first U.S. cannabis company to list on a major U.S. exchange, we are excited for the opportunity to expand our shareholder base, increase liquidity and raise awareness for the benefits of medical marijuana,” Trulieve founder and CEO Kim Rivers said in a statement.
“Uplisting to the NYSE is a major advancement for Trulieve and the industry.”
How did Trulieve prepare for uplisting?
An NYSE listing has long been out of reach for U.S. plant-touching cannabis companies, which major exchanges have historically declined to list while marijuana remained federally illegal.
The uplisting follows the April federal rescheduling of medical marijuana, when Acting Attorney General Todd Blanche reclassified it as a Schedule 3 substance. The final order created a pathway for U.S. Drug Enforcement Administration registration for state-licensed medical marijuana businesses.
After rescheduling, Trulieve completed a corporate restructuring and a third-party investment that deconsolidated its operations in markets serving both medical and adult-use customers, the company said.
Trulieve’s remaining consolidated operations consist solely of state-licensed medical marijuana facilities. Those include 206 medical dispensaries supported by 3.5 million square feet of production capacity registered with the DEA, according to the announcement.
The company operates medical marijuana businesses in Florida, Georgia, Pennsylvania and West Virginia.
“With robust cash generation and meaningful catalysts ahead, including expansion in Georgia and Texas, Trulieve is well-positioned to deliver on our promise to increase access to medical cannabis for U.S. patients,” Rivers said.
What is the industry’s reaction to Trulieve’s uplisting?
Trulieve currently trades on the Canadian Securities Exchange under TRUL and on the OTCQX market under TCNNF. Those listings will continue through the close of trading on Tuesday, according to the company.
Existing shareholders don’t need to take any action before the NYSE listing.
The American Trade Association for Cannabis (ATACH) and Hemp called the listing a milestone for the industry.
“For years, ATACH has argued that U.S. cannabis companies deserve access to major capital markets, the same access their international competitors have long enjoyed,” ATACH President Michael Bronstein said.
How are other operators preparing?
Trulieve’s listing comes as other multistate operators take steps toward possible U.S. exchange uplistings, though none has listed yet.
Curaleaf Holdings said May 26 it would execute a 1-for-3 reverse stock split in preparation for an uplisting. The stock split took effect Friday.
Verano Holdings followed with a 1-for-5 reverse stock split, expected to take effect Wednesday.
Both companies framed their moves as preparatory. Curaleaf said an actual listing would only be possible once regulatory changes formally permit cannabis companies to list on major domestic exchanges.
Investor interest in the sector has shown other signs of improvement since rescheduling. Village Farms International separately announced a $15 million registered direct equity investment from U.S. institutional investors, which the company said reflects growing interest ahead of further regulatory progress.
“While our balance sheet does not require a capital infusion, we took this opportunity as we believe it will enhance the strength of our cap table and welcome institutional capital partners of very high caliber who will support our future growth,” Village Farms President and CEO Michael DeGiglio said in a statement.
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A federal cannabis rescheduling hearing on adult-use marijuana’s status is set for June 29 and expected to end by mid-July. Until that process concludes and additional guidance is in place, MSOs with adult-use businesses remain largely locked out of the major exchanges.
Trulieve’s medical-only consolidated structure positions it to open trading on the NYSE on June 10.
