What is the difference between the American MSO and Canadian LP cannabis industries? Because cannabis remains federally illegal in the U.S. publicly listed multi-state operators (MSOs) have not yet been permitted to list publicly on major U.S. exchanges so they are mostly listed on the Canadian Securities Exchange (CSE). This exchange has limited institutional investors due to technical restrictions for most institutions. This in turn drives less trading volume for CSE-listed companies. On the other hand, because Canada legalized cannabis federally in 2018, Canadian-domiciled licensed producers (LPs) are able to access major U.S. exchanges and, as a result, Canadian players typically have higher trading volumes, more institutional investors, and lower cost of capital. How do the performances of the largest MSO and LP stocks compare?
Source: munKNEE.com