TERRASCEND SETS IN MOTION UP-LISTING TO THE TORONTO STOCK EXCHANGE
Last week, Terrascend announced that it filed an application to list its shares on the Toronto Stock Exchange (TSX). The company indicates that in order to qualify for listing, it will need to complete a reorganization. The specifics have not yet been disclosed, but this announcement follows Canopy Growth Corporation’s plans (October ‘22) to consolidate its U.S. THC assets into a new holding company (Canopy USA). Terrascend could propose a similar structure because it was originally formed as a Canadian-domiciled company.
While an up-listing from The Canadian Stock Exchange (CSE) will certainly provide added liquidity (average daily trading volume of the TSX is ~8x that of the CSE) and thus currency for future M&A activity, it is not necessarily a green light for institutional entry – that will primarily come from a rescheduling or delisting off of the Controlled Substances Schedule. The following provides some perspective on current institutional ownership of the Tier 1 US MSOs.