In what could be a first in both the cannabis industry and stock market history, a large marijuana cultivation company will list on a major North American stock exchange.
Canopy Growth Corp., one of Canada’s biggest licensed medical marijuana companies, started trading on the Toronto Stock Exchange (TMX) Tuesday under the ticker symbol CGC, according to Bloomberg.
Canopy started its life as a public company in 2014 after completing a reverse takeover transaction and getting listed on TMX’s junior Venture Exchange, which has less restrictive requirements and hosts smaller companies that can join the senior exchange once they attain certain requirements.
The company already has at least one analyst following it, Jason Zandberg of PI Financial Corp., who initiated coverage with a “buy” rating.
Zandberg forecast in a recent report that Canada will start recreational marijuana sales in mid-2018, and that the combined recreational and medicinal market will hit $5.6 billion in five years.
On Wednesday, Canopy was trading between about $2.30 and $2.50, and had a one-year return rate of about 60%.