EXCLUSIVE: Verano Preps For U.S. Capital Market Inclusion With Move To Cboe Canada

In a significant move for the cannabis industry, Verano Holdings Corp. began trading on Canada's Neo Exchange Inc., which operates as Cboe Canada. The decision followed weeks of anticipation as the company eyed its next step in the capital market.

Interviewed by Elliot Lane and Javier Hasse on the Benzinga Cannabis Insider podcast, Verano’s leading voices Darren Weiss, president, and Aaron Miles, chief investment officer, shared insights on the company’s strategic move and its vision for the future. 

The Allure Of Cboe

Aaron Miles highlighted the dual influences that pushed the company towards this decision: the impressive attributes of the NEO and the backing of Cboe. “Cboe is one of the largest equity platforms in the world, with 14% equity market share in the U.S.,” he explained, emphasizing the robustness of this exchange market. 

Venturing Into The U.S. Market

For Verano, the broader ambition is gaining a swift entry route into the U.S. market, anticipating potential positive responses from the U.S. market outlook.

“We have senior exchange status, meeting all the requirements to transition into the U.S.,” a move Miles said hints at potential affiliations with major players like Black Rock and Vanguard. Furthermore, he told Benzinga that he valued not having to restructure Verano’s business as a pivotal reason behind the transition.

Strategic Foresight 

Weiss weighed in on the company’s strategic foresight. "What we are interested in is […] how do we position the company to take advantage of this momentous shift that’s taking place nationally and internationally as it relates to cannabis,” he noted.

The move to Cboe Canada, according to Weiss, offers Verano a more direct route to U.S. exchange status once the regulatory landscape becomes favorable.

U.S. Regulatory Challenges

Addressing concerns about the U.S. stance on listing cannabis stocks, Weiss was optimistic but cautious. “It’s true that some exchanges are not considering U.S. THC businesses currently, but they are actively looking for opportunities,” he said, alluding to the fact that Cboe U.S. has been lobbying for the SAFER Banking Act.

Preparing for Future Opportunities

When pressed about a specific timeline for these potential U.S. market inclusions, Weiss responded, “We don’t know.” But, he added, Verano is prepared. “We know it’s coming. When that day comes, we will be ready for it.”