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Aurora Cannabis Added to TSX Composite Index

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Aurora Cannabis added to S&P/TSX  Composite Index

Over the past few months, Aurora Cannabis (ACB)(ACBFF) has become one of the most actively traded stocks on TSX. The company’s three-month average volume was about 19.6 million shares on March 9 compared to Canopy Growth’s (WEED) 7.2 million shares.

Given this liquidity and other factors, last week, the S&P Dow Jones Canadian Index Services announced the rebalancing of its S&P/TSX Composite Index and the addition of Aurora Cannabis. This change will come into effect on March 19 before the start of the trading session. The S&P calls the S&P/TSX the “headline index for the Canadian equity market.”

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Considering US listing

Last week, Bloomberg Markets reported that Aurora Cannabis is exploring the option of listing on US exchanges to gain access to US investors. Cronos (CRON) has already graduated to the NASDAQ Global Markets, becoming the first Canadian cannabis company to list on that exchange. In last week’s update (HMMJ), we discussed how Canopy Growth also indicated its intention to list on the US exchange.

Taking up CanniMed

On March 9, Aurora Cannabis announced that it succeeded in its bid to take up CanniMed’s common shares. As of March 8, 2018, the total shares outstanding on a fully diluted basis totaled 17,847,341, or 70.7% of CanniMed’s total shares outstanding. Aurora Cannabis will pay 98 million Canadian dollars to acquire CanniMed’s shares and issue about 50.6 million of Aurora Cannabis’s common shares.

Next, we’ll discuss how Aurora Cannabis plans to fund this deal.

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