Key facts
- Trulieve is restructuring to separate medical-only and mixed-use operations.
- The goal of the restructuring is to enable a listing on the NYSE.
- Trulieve will hold non-voting shares in the mixed-use portion, convertible to voting shares later.
- This strategy is modeled after Canopy Growth's corporate structure.
- The company aims to be the first Multi-State Operator (MSO) to uplist to a major US exchange.
Trulieve has announced a significant corporate restructuring aimed at paving the way for a listing on the New York Stock Exchange (NYSE). The strategy involves segregating its medical-only market operations from its mixed-use (adult-use and medical) markets. Under this new structure, Trulieve will hold non-voting shares in the non-listable, mixed-use portion of the business, representing approximately a 90% interest. These non-voting shares can be exchanged for common, voting ownership once federal law or exchange rules permit a full listing. This playbook closely resembles the structure previously adopted by Canopy Growth. The company's move is particularly viable because 75% of its current business is in medical-only markets, and the NYSE is showing increased comfort with listing DEA-registered medical cannabis operations following the medical cannabis rescheduling. Trulieve is segregating its assets on a state-by-state basis to simplify the parsing of medical versus recreational revenues. Management believes this move is strategic to be the first Multi-State Operator (MSO) to uplist, potentially capturing significant benefits from institutional capital and trading liquidity. While other MSOs like Curaleaf and SNDL are also positioned for uplisting, Trulieve's outsized exposure to medical-only markets allows for this specific approach now. The company anticipates this move will provide a sustainable trading multiple premium compared to peers, even as others eventually follow.