Aurora Cannabis to be listed on NYSE
Aurora Cannabis (ACB) (ACBFF) is slated to become the fourth Canadian cannabis company after Canopy Growth (CGC) (WEED), Tilray (TLRY), and Cronos Group (CRON) to be listed in the US stock market. On October 9, Aurora Cannabis announced that it has applied to be listed on the NYSE (New York Stock Exchange).
During the day, Aurora Cannabis stock gained about 3.4% to close at 13.2 Canadian dollars, while the Horizons Marijuana Life Sciences ETF (HMMJ) was almost flat at 23.5 Canadian dollars.
A listing on the US exchange comes with an additional regulatory burden for Canadian companies, as they are subject to SEC (U.S. Securities Exchange Commission) reporting requirements. Aurora Cannabis stated that it expects to receive approval for trading on the NYSE by the end of October 2018.
In the above chart, we’ve listed some of the requirements that Aurora Cannabis will be subject to. These requirements include the reporting of audited financial statements by an independent public accountant, the disclosure of material information, and the filing of required periodic financial statements in a timely manner.
The listing on the NYSE will likely give investors a huge boost of confidence in the company given the requirement to comply with SEC regulations, and it will also provide an opportunity for US investors to participate in Aurora Cannabis, which has so far only been trading on the OTC (over the counter) market in the US. The listing would also mean access to a larger pool of capital markets for Aurora Cannabis.