Aurora expected to debut on benchmark Canadian stock index

The second-largest cannabis company in Canada by sales is expected to be included in the benchmark Canadian stock index, a move that analysts predict will make the sector more appealing to institutional investors and ease capital access.

Alberta-based Aurora Cannabis, which trades on the Toronto Stock Exchange under the symbol ACB, could be added to the S&P/TSX Composite Index as early as Friday night, Toronto-based analyst Vahan Ajamian said in a research note.

“We believe this will continue the momentum of institutional investors looking closer at the sector,” Ajamian said.

Aurora would be the third cannabis company to be included in the index, after Canopy Growth (TSX: WEED) and Aphria (TSX: APH) were added late last year.

Separately, Aurora completed a capital raise worth 230 million Canadian dollars ($185 million), which is believed to be the largest public financing in North America’s cannabis sector.

The company intends to apply the proceeds to the construction of a 1 million-square-foot medical cannabis production facility in Denmark, plus other domestic and international opportunities.

In January, Aurora announced plans to partner with a major greenhouse operator to create “Europe’s largest” medical cannabis producer in Denmark, making it the second licensed cultivator to build a facility in the Scandinavian country.

To sign up for our weekly Canada marijuana business newsletter, click here.

Latest Headlines

4 comments on “Aurora expected to debut on benchmark Canadian stock index
  1. Lee on

    No doubts as to my investment acumen proof enuf that I’m not the sharpest tool in the box – I’ve studied, researched and calculated a number of weed plays, the past 10 months, and but a single one was by the narrowest margin profitable. I guess most weed touts would reply: hold and wait. I held and saw my account drop, and I got out and put $ in safer stocks. Sorry, but its way to crowded to find winners. I won’t go in again unless, at the very least I see a profit from on a balance sheet.

  2. johnny on

    When an entire commodity (industry) is going from illegal to legal and the multitude of changes that it is going through including government reprogramming and all those changes, which are immense, and all the other unknowns and known issues do you really think at this time in this process any company is going to make a profit. Remember those companies also need to build out, expand in other ways ( buying other companies etc .etc. and get positioned for the near future. Stop listening to those analysts who don’t know a damn thing beyond their recent studies at school. They have never experienced anything like this before and it appears they haven’t checked their historical data for any comparables or anything else for that matter. And for comparables their are only two like events in our recent history. SO listen to the people who really know little or do you own work and make an educated quess as to where this is going. Ill bet you will do better than they are.
    Remember no guts no glory

Leave a Reply

Your email address will not be published. Required fields are marked *