Canopy Growth, the largest medical cannabis company in the world by sales, is planning to list its shares on the Nasdaq, a move that would make it only the second vertically integrated MMJ business to be traded on a top American stock market.
CEO Bruce Linton disclosed his Nasdaq aspirations in a speech to the Economic Club of Canada on Thursday afternoon, according to a note by Vahan Ajamian, a Toronto-based analyst with Beacon Securities.
Linton indicated no timeline for the listing, but Ajamian estimates it could occur sometime after March.
Linton told about 200 people that Canopy had been making preparations to list on the Nasdaq last October, but the plan was shelved so the company could focus on sealing an investment from global alcohol giant Constellation Brands.
Start of a trend?
It’s the second significant announcement this week connecting a major U.S. stock market to a Canadian medical cannabis company.
On Tuesday, Cronos Group, a vertically integrated medical marijuana company, started trading on the Nasdaq under the symbol CRON.
Cronos was the first plant-touching company in medical cannabis cultivation and sales to list on the Nasdaq.
A listing on the Nasdaq gives companies easier access to capital from institutional, strategic and retail investors.
Most retail investors in the United States using discount trading platforms can’t easily trade stocks on Canadian exchanges, which list about 70 cannabis companies.
Institutions tend to express more interest in companies traded on major exchanges, as well.
More MJ legitimacy
A Canopy listing would help “the average American institution get a little more comfortable with cannabis stocks,” Ajamian said.
Ajamian says the move would help further legitimize the entire industry in the United States.
“These are normal companies abiding by federal laws,” he said, “and they’re OK for investors to own.”
Cronos is traded on the TSX Venture Exchange under the symbol MJN; Canopy’s shares are traded on the Toronto Stock Exchange as WEED.
Matt Lamers can be reached at [email protected]
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