Curaleaf Holdings, North America's largest multi-state cannabis operator by revenue, announced Thursday that its board of directors has authorized a normal course issuer bid to repurchase up to 34.4 million subordinate voting shares over the next twelve months — representing approximately 5% of shares outstanding — at an aggregate market value of approximately $83 million based on the April 14, 2026 closing price on the Toronto Stock Exchange. The buyback, approved by the TSX, commences April 20, 2026 and runs through April 19, 2027.
Chairman and CEO Boris Jordan said the repurchase program is 'a meaningful way to return value to our shareholders and reflects our confidence in the strength and durability of our strategy.' The announcement signals Curaleaf management's view that the company's TSX-listed shares — which have traded at a significant discount to their fundamental value in the view of many cannabis sector analysts — represent an attractive use of capital relative to alternative investment opportunities.
Context: Cannabis Sector Navigating Headwinds
Curaleaf's buyback announcement comes at a challenging moment for the U.S. multi-state operator sector. The anticipated federal rescheduling of cannabis from Schedule I to Schedule III — which would eliminate the crippling Section 280E tax burden on plant-touching cannabis businesses — has faced repeated delays, keeping effective tax rates for companies like Curaleaf above 70% of taxable income in many states. Several MSOs have restructured debt, cut costs, and rationalized store footprints over the past 18 months to preserve cash in the difficult operating environment.
The company reported full-year 2025 revenue of approximately $1.2 billion, making it the largest publicly traded cannabis company in the world by top line. However, free cash flow has been constrained by the 280E burden, capex requirements for facility improvements, and the costs of defending against competitive pressure in markets including Florida, New York, and New Jersey, where new entrants have intensified pricing pressure on premium flower.
Market Reaction and Sector Implications
Curaleaf's