Cannabis Round-Up: Curaleaf Makes TSX Listing Progress, STATES Act Returns

Curaleaf receives conditional approval for TSX listing

Two months after applying to list on the TSX, cannabis producer Curaleaf Holdings (CSE:CURA,OTCQX:CURLF) has received conditional approval to list its subordinate voting shares on the exchange.

The company issued the news on Thursday (December 7) via a press release. “We are now one step closer to accessing an even broader set of global institutional investors than we currently have, alongside the capital and increased liquidity that comes with listing on a major exchange such as the TSX,” said Executive Chairman Boris Jordan.

Full approval for Curaleaf's TSX listing is pending customary requirements. The company has expressed its intention to delist from the Canadian Securities Exchange once it meets the conditions for listing on the TSX.

Canada's wholesale flower prices climb higher

Cannabis companies operating in Canada faced a tough market in 2023, with several prominent production facilities shutting their doors. Aurora Cannabis (TSX:ACB,NASDAQ:ACB) closed its Lachute, Québec, facility in September, while SNDL (NASDAQ:SNDL) shut down operations at its Olds, Alberta, facility in October. That same month, Canopy Growth (TSX:WEED,NASDAQ:CGC) sold its Smith Falls, Ontario, production facility back to Hershey Canada.

These closures could be a factor contributing to a trend of increasing wholesale flower prices. According to data provided to StratCann by the Canadian Cannabis Exchange (CCX), a platform for buying and selling cannabis products, the average cost for dried flower under four months old has been steadily increasing since June. The latest figures from October reveal that the average price is $1.12 per gram, an increase of 6.67 percent since June.

CCX CEO Steve Clark said in an interview with StratCann that these higher prices can be attributed to a shrinking pool of sellers, demand from domestic buyers and an increase in international exports.

Ohio congressman reintroduces STATES Act

Ohio Republican Congressman Dave Joyce has introduced a revised version of his STATES Act.

The bill made its first appearance back in 2018, and according to the congressman’s website, he and four other representatives from Oregon, Florida and Louisiana are seeking to allow the 38 states that permit cannabis to some degree to implement their own laws without fear of federal interference or repercussions.

The act would declassify cannabis as a controlled substance and instead move regulation services to the Alcohol and Tobacco Tax and Trade Bureau and the US Food and Drug Administration.

According to the congressman, the revised version of the bill would enable increased research into the medical benefits of cannabis, ease the financial burden of companies that are unable to take advantage of traditional financial products and “create a safe and professional environment for one of the fastest-growing industries.”

The reintroduction of the STATES Act was announced on the congressman’s website two days after a group of six governors from Colorado, Illinois, Louisiana, New York, New Jersey and Maryland penned a letter to President Joe Biden, urging him to follow through with the US Department of Health and Human Services’ recommendation to reschedule cannabis from a Schedule I substance to a Schedule III substance before the end of the year.

Germany delays recreational cannabis vote

German cannabis reform faced another potential setback recently, when a mid-December vote was put off yet again. It's now uncertain whether recreational legalization will happen by the April 2024 target.

A report from Germany's Legal Tribune Online indicates that the Sozialdemokratische Partei Deutschlands — the German Social Democratic Party or SDP — has unspecified concerns about the legislation. The SDP is partnered with Germany's Free Democratic Party and Greens in an alliance called the Traffic Light coalition.

Similarly, an article from German publication Spiegel Politics alludes to several points that are still in need of clarification before the law can be voted on. A revised date is yet to be set.

Japan legalizes medical cannabis use

In a surprising move, Japan's House of Councilors has passed a revision to its Cannabis Control Law that legalizes cannabis-derived pharmaceuticals, but also toughens its ban on recreational marijuana use.

This change marks a significant shift in Japan's previously stringent stance on cannabis, which prohibited all forms of the plant for both medical and recreational purposes. The revision allows for the use of cannabis-derived products in the treatment of certain medical conditions, but maintains prohibitions on recreational use. The change represents a compromise between the desires of medical experts and the conservative stance of the Japanese government.

However, the new law comes with an important provision. While cannabis for medical purposes will be allowable, cannabis use for recreational purposes remains illegal, with violators now facing a seven year prison sentence. Previously, only import, export, cultivation and possession were banned. This aspect of the law was met with opposition from members of Japan’s liberal Reiwa Shinsengumi party. The leader of the party, Taro Yamamoto, spoke out, saying it is ironic that actions that previously carried no penalties now come with long prison sentences.