Market Overview

Easy As ACB? Another Cannabis Company Applies To List On The NYSE

Share:
Easy As ACB? Another Cannabis Company Applies To List On The NYSE

Canada-based Aurora Cannabis Inc (OTC: ACBFF) has applied to be listed on the New York Stock Exchange.

What To Know

The company intends to list under the ticker symbol ACB, but it will continue to list on the Toronto Stock Exchange. Until the NYSE listing is approved, Aurora Cannabis will keep trading on the over-the-counter market.

Aurora Cannabis is a major marijuana player not only in Canada, where it has a production capacity of over 500,000 kg a year, but also around the world, as it has sales and operations on five continents. Attracting new investors through the NYSE listing could help the company further expand its global presence. Earlier this year, Aurora Cannabis took over MedReleaf for $3.2 billion.

"Through our NYSE listing, Aurora joins an established group of mature global brands with improved access and exposure to an engaged international institutional investor audience," CEO Terry Booth said in a press release.

Why It's Important

Cannabis remains illegal in the United States on a federal level and there aren't many U.S.-based companies that opt for a listing on a stock exchange. North of the border, things are looking much brighter.

As Canada approaches the full legalization of cannabis, there's clearly a demand among U.S. investors to put their money into Canadian cannabis companies. Listing on a large exchange like the NYSE or NASDAQ is bound to attract more investors because NYSE- and NASDAQ-listed companies are subjected to stricter regulations and are required to provide a higher level of transparency.

The last couple of years has witnessed a boost among NYSE- and NASDAQ-listed Canadian cannabis stocks.

Canopy Growth Corp (NYSE: CGC) has been trading in the U.S. since 2014, but only earlier this year it listed its stock on the NYSE. Canopy Growth's May listing followed Cronos Group Inc (NASDAQ: CRON), which in February became the first Canadian marijuana company to list on the NASDAQ. Tilray Inc (NASDAQ: TLRY) is another Canadian marijuana player that opted to conduct its IPO directly on NASDAQ in July.

The Aurora Cannabis news is a "slight negative for Cronos and Tilray, in my view, as more companies list," according to the 420 Investor, Alan Brochstein. "[There are] more options now, and more coming."

Related Links:

Pyxus Is The Latest Marijuana Stock To Skyrocket

Why Small Cannabis Stocks Matter – And Which Ones Deserve A Closer Look

Posted-In: Alan BrochsteinCannabis News IPOs Top Stories Exclusives Markets Interview Best of Benzinga

 

Related Articles (CGC + ACBFF)

View Comments and Join the Discussion!

Trian - A Major Wendy's Stakeholder - Now Eyes Papa John's

26 Stocks Moving In Tuesday's Pre-Market Session