Trulieve Cannabis (CSE:TRUL,OTCQX:TCNNF) has secured approval to list its subordinate voting shares on the New York Stock Exchange (NYSE), marking the first time a US plant-touching marijuana operator has gained access to a major domestic equity market.
Major US exchanges have historically barred cannabis operators due to the drug’s status as a Schedule I controlled substance. To clear the compliance hurdles required by the NYSE, Trulieve executed a corporate restructuring alongside a third-party investment to completely deconsolidate its operations in adult-use recreational markets.
The company’s remaining consolidated footprint consists exclusively of state-licensed medical marijuana businesses, which are now eligible for US Drug Enforcement Administration registration.
This network includes 206 medical dispensaries backed by 3.5 million square feet of production capacity across Florida, Georgia, Pennsylvania, and West Virginia.
“As the first US cannabis company to list on a major US 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 press release. “Uplisting to the NYSE is a major advancement for Trulieve and the industry.”
The shift was made possible after Acting Attorney General Todd Blanche moved to reclassify cannabis from Schedule I to Schedule III.
The Department of Justice final order shifted FDA-approved products and items regulated by state medical licenses into the lower-risk tier, immediately easing longstanding research restrictions and eliminating the penalizing IRS Code Section 280E tax framework.
Under Schedule III, cannabis companies can deduct standard operating expenses like rent and payroll for the first time.
This triggered a race among multi-state operators to adjust their capital configurations for potential uplistings. Curaleaf Holdings (CSE:CURA,OTCCURLF:QX) executed a 1-for-3 reverse stock split, while Verano Holdings (CNSX:VRNO) is scheduled to enact a 1-for-5 reverse split to be effective on June 11.
Trulieve’s current listings on the Canadian Securities Exchange and the OTCQX market will trade normally until the close of market on Tuesday, with existing shares automatically transitioning to the NYSE debut.
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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
