Cannabis MSOs Returning to US from Canada

For years, a quirk of federal law forced American cannabis companies to list their shares not on Wall Street, but in Canada. Because cannabis remains a federally controlled substance, the NYSE and Nasdaq have been off-limits to plant-touching operators, a position the exchanges maintained even as the SEC permitted these companies to go public and FINRA authorized trading of their stocks. The Canadian Securities Exchange, the Toronto Stock Exchange, and Cboe Canada stepped in to fill the void, becoming the de facto public markets for the largest U.S. multi-state operators (MSOs). The arrangement was always a workaround, not a destination. 

Now, against the backdrop of the DOJ’s rescheduling of medical cannabis to Schedule III in April 2026 and anticipated rescheduling of adult-use cannabis in the months ahead, that dynamic is beginning to shift. 

The Companies Leading the Way 

Three MSOs have positioned themselves at the front of the migration. TerrAscend Corp. was the first U.S. plant-touching operator to list on the Toronto Stock Exchange, in mid-2023, engineering a ring-fenced structure between its listed holding company and its U.S. operations, explicitly as a steppingstone to a domestic exchange. Following the April 2026 rescheduling order, Executive Chairman Jason Wild stated publicly that the company sees an opportunity to uplist to Nasdaq or NYSE and could do so in “weeks, not months.” During TerrAscend’s Quarter 1 earnings presentation on May 7, 2026, management reiterated this timeline, signaling that final structural clearance hinges on the outcome of the broader upcoming adult-use hearings. 

Verano Holdings moved from the CSE to Cboe Canada in October 2023 with an explicit arrangement: Cboe committed to provide immediate access to its U.S. exchange platform as soon as a viable avenue exists, eliminatingthe need for further restructuring. Anticipating this shift, Verano completed its corporate redomiciliation from British Columbia to Nevada in late 2025 in preparation. 

Curaleaf, the largest MSO at the time, completed its uplisting from the CSE to the TSX in late 2023, bringing itself under stricter listing requirements and opening access to institutional investors blocked from holding CSE-listed stocks. A major U.S. exchange remains its stated destination. 

The Cannabis Company’s trajectory offers a cautionary counterpoint: it also migrated off the CSE, but its subsequent entry into U.S. and Canadian bankruptcy proceedings in early 2026 illustrates that exchange migration alone cannot resolve underlying financial stress. 

The Case For Moving 

The structural rationale is straightforward. A NYSE or Nasdaq listing removes compliance barriers that prevent major U.S. clearing firms, large national brokerage firms, pension funds, and index funds from holding Canadian-listed securities. It opens the door to ETF inclusion, analyst coverage from major U.S. banks, and valuation against domestic consumer staples and healthcare peers, potentially commanding higher multiples than CSE-listed names have historically received. It also eliminates the operational and expense burden of maintaining dual listings across two countries with different regulatory regimes, proxy rules, and disclosure requirements. 

The Risks That Remain 

Federal illegality is not fully resolved. Schedule III rescheduling reduces the punishing 280E tax burden but does not legalize cannabis. Until the Controlled Substances Act is amended or exchanges receive explicit guidance, MSOs with adult-use operations may need to maintain ring-fenced holding structures that complicate governance. NYSE and Nasdaq listing standards, including quarterly reporting, internal control certifications and audit committee independence, are considerably more demanding than the CSE’s, and will impose compliance costs that several MSOs, still running losses in a capital-constrained environment, are not well-positioned to absorb. Big Four audit firms have historically been reluctant to engage cannabis clients, though that is changing. And MSOs that built their shareholder bases on Canadian exchanges over many years should expect some selling pressure as retail investors who cannot follow them to a U.S. listing exit. 

The Bottom Line 

These are American companies with American assets, American customers, and American investors. The Canadian listing was a cumbersome and expensive regulatory workaround, not a strategic preference, and the companies that have done the early structural work have positioned themselves to be among the first through the door when it fully opens. Whether they emerge stronger on the other side will depend not just on exchange access, but on the underlying health of their balance sheets in what remains an intensely competitive industry. 

This article was written by David Feldman and Magnolia Mullen, is provided for informational purposes only and does not constitute legal advice. For guidance specific to your situation, contact Feldman Legal Advisors at www.feldmanlegaladvisors.com.