Cannabis Round-Up: Curaleaf Announces TSX Listing, Health Canada Shares Findings

Curaleaf announces plans for TSX listing

Following Terrascend’s successful bid to list on the TSX, US-based cannabis company Curaleaf filed an application to list on Canada's senior exchange this past Tuesday (October 10). Curaleaf, which is headquartered in New York, reportedly said back in May that it intended to transfer its listing to the TSX from the CSE. On October 3, the company satisfied one of the TSX's listing requirements by closing an offering of subordinate voting shares. Curaleaf received gross proceeds of C$16.2 million, with Canaccord Genuity (TSX:CF,OTC Pink:CCORF) acting as the underwriter and bookrunner.

Although Curaleaf has filed the application, its listing has yet to be confirmed by the TSX. Like Terrascend, Curaleaf may be required to undergo a restructuring before its application can be approved.

Health Canada releases Cannabis Act review findings

A little over a year after the Canadian government commenced a legislative review of the Cannabis Act, Health Canada released its findings on Tuesday (October 10) in a 113 page preliminary report titled What We Heard.

The review, which was written into the Cannabis Act's legislation, but was launched a year later than anticipated, examined the impact legalization has had on youth, the economy, illicit market activity and Indigenous and rural communities. However, its main focus was to assess whether harm reduction has been achieved thanks to legalization.

According to the report, legalization has made an impact on illicit sales, but further measures should perhaps be considered in order to further reduce harm. In particular, some panel advisors suggested that stricter age limits should be in place. Additionally, despite consumer requests that THC limits (especially on edible products) be increased, health experts agree that the current precautionary approach is in the best interests of public health.

The panel mostly consisted of health experts and did not include any economic or business experts. One area that many Canadian cannabis business owners and investors feel was overlooked is the economic impact of legalization. In response, a second panel of business and economics experts will be assembled later this month to discuss what changes need to be made in Canada for the cannabis industry to thrive at the levels once imagined.

SAFER Banking Act faces Senate hurdles

After the SAFER Banking Act finally landed on the floor of the US Senate in September, supporters were hopeful it would be able to maintain its momentum. However, that optimism may have come too soon.

Complications in Washington could impede the act’s path forward. One obstacle is Kevin McCarthy’s dismissal from his position as House speaker on October 5. As of Friday (October 13), no replacement had been appointed.

In the meantime, a growing list of federal duties is pushing the act to the bottom of the pile. Importantly, Congress needs to pass a spending bill before November 17 in order to prevent a complete government shutdown, and a House speaker must be chosen before a spending bill can be decided upon. Complicating matters is the fact that the top Republican nomination for speaker is Ohio Representative Jim Jordon, who is opposed to any kind of reform of cannabis policy.

To make matters worse, according to Marijuana Moment, Senator Steve Daines has said he plans to stall the SAFER vote until he is certain it can pass in the House — it has already done so seven times in the past, but not as it is currently written. Amendments made to the bill in order to get it passed to the Senate did not sit well with some members of the House, and as the act lost a supporter with the dismissal of McCarthy, it is unclear if it will be able to pass a House vote for an eighth time.

Cannabis company news

• Aleafia Health, which filed for bankruptcy protection back in July, announced that Red White & Bloom Brands (CSE:RWB) has made a successful bid to purchase the company. The transaction has been submitted for court approval at a hearing on October 27. Should approval be granted, the finalization of the sale should take place no later than November 22.

• Terrascendraised its full-year net revenue guidance from US$305 million to US$317 million, which would represent year-on-year growth of 28 percent. In addition, the company has boosted its full-year guidance for adjusted EBITDA from continuing operations from US$58 million to US$63 million.