The competition in the Canadian cannabis industry is heating up.
What Happened?
Earlier this week, licensed cannabis producer Cronos Group (CVE:MJN) (NASDAQ:CRON) became the first cannabis company to list on a big league U.S. stock exchange. The Toronto-based company commenced trading its shares on the Nasdaq Exchange on Tuesday, February 27. As monumental as this was to the entire cannabis industry, Canadian cannabis producers weren’t going to let Cronos Group stay in the spotlight for long.
On Thursday, during an Economic Club of Canada lunch, the CEO of Canopy Growth (TSE:WEED), Bruce Linton, expressed an interest in listing on the Nasdaq at some point in the near-future. It wasn’t one of those comments that someone makes before really thinking it through either. Mr. Linton made his intention to list on the Nasdaq very clear, stating Canopy Growth has been planning for this listing since October of last year.
So maybe Canopy’s listing doesn’t have anything to do with it trying to catch up to Cronos Group. According to Linton, the only reason the Smith Falls, Ontario-based company hasn’t already listed with the exchange is that the plan was halted for a period of time due to the deal with Constellation Brands. Now that that’s over, Linton says “listing on the Nasdaq seems to be back on the front burner for the company.”
This is pretty exciting news for Canopy Growth, and it appears the stock market agrees with me. As of this writing, Canopy Growth is trading at $29.09. This puts the WEED stock up $1.70, or 6.14%. It has a market capitalization of 5.76 billion.
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The Takeaway
A lot of people had high expectations for the Canadian cannabis sector in 2018 and for a while there, it seemed like it wasn’t going to come close to meeting these expectations. However, things finally seem to look promising again. Aurora Cannabis (TSE:ACB), another licensed cannabis producer, just signed an agreement with Shoppers Drug Mart, and to top it off, we might have two cannabis companies trading on a major American Exchange sooner than planned.
That sounds good to me. What do you think?
Featured Image: Twitter
