One of the Largest Cannabis Companies is Going Public on the New York Stock Exchange
Written by: Jeremy Berke – Business Insider
Aurora Cannabis, one of the largest Canadian marijuana producers, is going public on the New York Stock Exchange. When Aurora’s shares start trading on Tuesday morning, it will join a select list of cannabis producers that are listing on US-based exchanges. While US-based exchanges were initially reticent to list Canadian marijuana producers, companies like Tilray (which conducted an initial public offering on the NASDAQ in July), Cronos Group, and Canopy Growth all now list on US exchanges.
“We believe that the legalization in Canada offers a road map to invest in the companies that will form the basis of the legal cannabis industry in the coming years,” Jon Trauben, a managing partner at the cannabis-focused Altitude Investment Management, previously told Business Insider.
To get listed on a US exchange like the NYSE, cannabis producers have to prove they are not violating any federal laws by importing cannabis into the US, except under specific circumstances. Aurora currently trades on the Toronto Stock Exchange under the ticker ACB. The Edmonton-based cultivator, or licensed producer, grows cannabis for both the adult-use and medicinal market.
Aurora’s market capitalization has gained over 100% since the middle of August. On August 15, the beverage giant Constellation Brands announced it was upping its stake to $4 billion in Aurora’s rival, Canopy Growth.
As of last week, marijuana is legal in Canada. Legalization in Canada, however, didn’t have the impact most investors had hoped for. Stocks got slammed as traders dumped shares. Aurora sank over 12% on Monday in the leadup to Tuesday’s NYSE listing.