Last week saw Canadian company Cronos Group listing on the Nasdaq Stock Market, becoming the very first cannabis firm to begin trading on a major stock exchange in the United States. (Read our story about Cronos Group’s Nasdaq’s listing here.)
This week, another Canadian company, Aurora Cannabis, hinted that it might follow suit.
Aurora said on Tuesday that it is considering a dual-listing outside the Toronto Stock Exchange. It plans to list its shares on the Nasdaq, the New York Stock Exchange, or the AIM, which is a division of the London Stock Exchange.
Aurora Chief Executive Officer Terry Booth stated that while the company is already attracting many investors in Canada, there are also more banks and more institutions that are looking to penetrate into the market.
The company needs to make a potential listing in order to “broaden its shareholder audience,” as well as to make it easier for U.S. and global investors to invest in Aurora.
Aurora’s shares rose by as much as 2% and were down 1.8% to $11.53 today in Toronto. Moreover, Aurora reported a strong revenue growth for its latest quarter and it is expected to perform well on the back of production capacity expansion as well as strategic partnerships with other businesses.
According to Aurora Chief Corporate Officer Cam Battley, the company needs to make a potential listing in order to “broaden its shareholder audience,” as well as to make it easier for U.S. and global investors to invest in Aurora.
Aurora’s potential listing comes as the company moves closer to completing its merger deal with CanniMed Therapeutics.
Battley, however, would not reveal whether Aurora had already started the process of listing on one of these mentioned stock exchanges. He only mentioned that they were doing their due diligence and that it is something that the company has been looking at for some time now.
Aurora is reportedly examining all its listing options and is expected to go with the one that is most beneficial.
Aurora’s potential listing comes as the company moves closer to completing its merger deal with CanniMed Therapeutics. This $852-million deal is considered to be the largest in the cannabis industry so far.
Once completed, the merger will create the largest cannabis company in the world, surpassing Canopy Growth. The deal is also expected to give the combined business entity a market value of $6.01 billion.
(We have also written an entry about the Aurora-CanniMed deal here.)
As more and more states are fully legalizing cannabis in the U.S., Canadian cannabis companies feel the need and the pressure to consolidate ahead of the launch of recreational cannabis sales in Canada this summer. These companies are also trying to refine their market knowledge as the U.S. still remains caught in the rivalry between the state governments and the federal government where cannabis legislation is concerned.
Battley added that with the additional experience Aurora will have given a successful experience in states that have already legalized cannabis for adult use and given the number of states that have established medical cannabis frameworks, they expect to see an evolution of attitudes in the U.S., in time.
Additionally, Aurora is also expanding into Australia and Europe.
Battley pointed out that they “see cannabis becoming a global industry within the next few years.”
Other than Aurora, Canopy Growth, also a Canadian medical cannabis company, has also expressed interest in listing at some point on the Nasdaq.
About Aurora Cannabis
Aurora Cannabis is the second largest cannabis producer in Canada after Canopy Growth Corp. The Edmonton-based Aurora debuted on the TSX or the Toronto Stock Exchange in October 2016. Aurora produces dry cannabis and it was also granted license to sell cannabis oil.