Canopy, world’s biggest marijuana company, hopes for Nasdaq listing

, Canopy, world’s biggest marijuana company, hopes for Nasdaq listing

Canopy Growth, the largest medical cannabis company in the world by sales, is planning to list its shares on the Nasdaq, a move that would make it only the second vertically integrated MMJ business to be traded on a top American stock market.

CEO Bruce Linton disclosed his Nasdaq aspirations in a speech to the Economic Club of Canada on Thursday afternoon, according to a note by Vahan Ajamian, a Toronto-based analyst with Beacon Securities.

Linton indicated no timeline for the listing, but Ajamian estimates it could occur sometime after March.

Linton told about 200 people that Canopy had been making preparations to list on the Nasdaq last October, but the plan was shelved so the company could focus on sealing an investment from global alcohol giant Constellation Brands.

Now that the Constellation deal is in the clear, Canopy is apparently putting the Nasdaq listing back on the front burner.

Start of a trend?

It’s the second significant announcement this week connecting a major U.S. stock market to a Canadian medical cannabis company.

On Tuesday, Cronos Group, a vertically integrated medical marijuana company, started trading on the Nasdaq under the symbol CRON.

Cronos was the first plant-touching company in medical cannabis cultivation and sales to list on the Nasdaq.

A listing on the Nasdaq gives companies easier access to capital from institutional, strategic and retail investors.

Most retail investors in the United States using discount trading platforms can’t easily trade stocks on Canadian exchanges, which list about 70 cannabis companies.

Institutions tend to express more interest in companies traded on major exchanges, as well.

More MJ legitimacy

A Canopy listing would help “the average American institution get a little more comfortable with cannabis stocks,” Ajamian said.

Ajamian says the move would help further legitimize the entire industry in the United States.

“These are normal companies abiding by federal laws,” he said, “and they’re OK for investors to own.”

Cronos is traded on the TSX Venture Exchange under the symbol MJN; Canopy’s shares are traded on the Toronto Stock Exchange as WEED.

Matt Lamers can be reached at [email protected]

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3 comments on “Canopy, world’s biggest marijuana company, hopes for Nasdaq listing
  1. Brett Roper on

    Yes .. perhaps largest Medical sales but not largest Cannabis sales (Med and Adult) in the world at this time … several privates in the US eclipse their sales and are profitable to boot, despite 280e. Too bad the US marketplace does not allow US companies such consideration as the privates would likely be thrilled with the valuations the Canadians are getting.

    • SC Hill on

      Aurora is actually larger than Canopy by market cap now with the acquisition of CanniMed. Why no mention of what they plan to do in this regard. Strange…there is no way those two will let the other get a leg up without matching their actions.

  2. MARK on

    Canopy Growth Corporation (TWMJF)
    Other OTC – Other OTC Delayed Price. Currency in USD

    i bought a very few shares of twmjf from two online brokerage firms. TWMJF OTC here is the same thing as weed in canada.

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