Canopy Growth on NASDAQ?
Last week, Canopy Growth’s (WEED) CEO, Bruce Linton, indicated that Canopy Growth will be listed on the NASDAQ exchange in the US, according to a Reuters report. Canopy Growth’s listing on NASDAQ was supposed to take place in October of 2017, but the company put off the plan after Constellation Brands (STZ) acquired a stake in the company.
US investor interest in cannabis stocks
According to the Reuters report, CEO Bruce Linton stated, “When Constellation put money into our business, the number of U.S. institutional investors interested in us went way up.”
The interest of US investors (HMLSF) in the Canadian marijuana business was further substantiated by Cronos Group (CRON), which become the first Canadian Cannabis company to begin trading on the NASDAQ Global Market on February 27. The stock rose 14% from the February 27 opening to the February 2 closing.
Cronos Group’s stock on the TSX Ventures exchange in Canada rose by as much as 36.7% last week primarily driven by its listing on the US market.
Why is this important?
Cronos’s latest listing gives it better access to the US capital markets, which in turn increases the company’s potential to raise funds and make capital expenditures, which will be key to success for companies to capture the Canadian recreational cannabis market.
To learn more, read Why Cannabis Stock Cronos Group Surged 11% Yesterday. Amid the increasing interest in listing on US exchanges, companies such as Aurora Cannabis (ACB) may also go in this direction.