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Introduction

MSO cannabis stocks have surged so far in July, in general, thanks to a potent mix of regulatory optimism and investor momentum: up 29% MTD, on average, though still down 15% YTD. Here's what lit the latest spark:

1. Banking Reform Buzz: Investors grew hopeful about the Secure and Fair Enforcement Regulation (SAFER) Banking Act, which cleared a Senate committee. This legislation would allow banks to work with cannabis businesses without federal penalties—potentially unlocking capital and reducing operational risk.
2. Rescheduling Speculation: There’s renewed chatter about the DEA rescheduling marijuana to a lower-risk category, which would be a game-changer for taxation and legitimacy; currently on hold.

Performance Of Largest MSOs

Below is a recap of how the 6 largest cap vertically integrated multi-state operator (MSOs) stocks of American cannabis companies have performed since the end of June (i.e. MTD), in descending order, and year-to-date (YTD) plus any major specific reasons why by constituent, where applicable:

1. TerrAscend (TSNDF): up 52.0% MTD; down 36.7% YTD
   • Debt Refinancing: Announced a $79 million non-dilutive debt financing on July 9th to retire existing debt and finance future mergers and acquisitions with the balance earmarked for growth initiatives suggesting the company is gearing up for aggressive growth. This move strengthens their balance sheet and signals confidence in future expansion. Now, with no material debt maturing until late 2028, investors see reduced financial risk and improved long-term stability.
2. Curaleaf (CURLF): up 43.8% MTD; down 20.7% YTD
   • European Expansion Milestone: Completed the buyout of its minority partner in Curaleaf International on July 2nd, giving it full ownership of its European operations. This move streamlines decision-making and signals confidence in its global growth strategy. In addition, the strategic investor chose to receive payment entirely in Curaleaf shares, rather than cash—an unusual move that suggests long-term faith in the company’s future.
3. Verano (VRNOF): up 32.7% MTD; down 44.9% YTD
   • Expansion Moves: Announced new dispensary openings and partnerships, including a bodega-style retail concept in Phoenix and a collaboration with Grow Sciences in Illinois. These growth initiatives signal innovation and market penetration.
4. Cresco (CRLBF): up 32.0% MTD; down 19.5% YTD
   • Nothing Specific
5. Trulieve (TCNNF): up 30.1% MTD; down 3.4% YTD
   • Nothing Specific
6. Green Thumb (GTBIF): up 25.0% MTD; down 14.6% YTD
   • Nothing Specific

Conclusion

It’s a classic case of “buy the rumor”—but if reforms materialize, this rally could have legs. Time will tell.

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