Canadian-based medical marijuana company Canopy Growth (TWMJF) announced that it has applied to the New York Stock Exchange (ICE) to list its shares. The company said that it expects to begin trading at the exchange by the end of May using the ticker symbol CGC. The company currently trades in Canada on the Toronto Stock Exchange using the symbol WEED and also on the OTC Markets with the symbol TWMJF.
“Since becoming the first regulated cannabis producer to list their shares in North America in 2014 our team has focused on building credibility through consistent execution,” said Chief Executive Bruce Linton. “Once finalized, listing our shares on the NYSE will represent a continuation of our upward trajectory as we build the global cannabis industry.” The company said it will maintain its share on the TSE.
The New York Stock Exchange has been reluctant to engage with cannabis companies citing the legality of marijuana in the United States, although a handful of entities like Innovative Industrial Properties (IIPR) and India Globalization Corp. (IGC) have squeaked in. It seems Canadian-based companies pass the smell test since marijuana is legal in that country.
“It makes tremendous sense and will further open institutional pockets,” said Sean Stiefel, Portfolio Manager and CIO at Navy Capital. “With companies like Scott’s Miracle-Gro (SMG) investing in cannabis, you’re getting where there’s no discernable line. How can you let Constellation Brands (STZ) list, but then not Canopy when they’ve invested in Canopy?”
The company statement said that Canopy Growth will file a Form 40-F Registration Statement with the United States Securities and Exchange Commission and that the listing of the company’s common shares on the NYSE remains subject to the approval of the NYSE and the satisfaction of all applicable listing and regulatory requirements.
In other news, Canopy said that it planned to acquire 33% of BC Tweed Joint Venture Inc., which are the shares that it didn’t already own. That deal is expected to close in July and as a result, Canopy said it will issue $374 million worth of its common stock.
Just last month, Canopy signed definitive agreements to acquire the Czech Republic’s Annabis Medical. This company currently imports and distributes cannabis products pursuant to federal Czech licenses, with products for sale through pharmacy channels across the Czech Republic. Its founder and CEO, Dr. Robin Kazík, will lead the Czech subsidiary as part of the larger Canopy Growth family. The deal is valued at C$2.5 million.
The acquisition of Annabis Medical will build on Canopy Growth’s position in the European medical cannabis space and follows the recent agreement with Spain’s Alcaliber S.A. Additionally, Canopy Growth currently supplies the German market through its subsidiary, Spektrum Cannabis GmbH, and has formed a partnership, Spectrum Cannabis Denmark ApS, which is licensed to cultivate cannabis in a 40,000 square meter greenhouse production facility located in Odense, Denmark.
Canopy’s Canadian stock was lately trading at C$30.30, down from its year’s high of C$44, but way about its 52-week low of C$6.58. The OTC stock last closed at $23.71, also below its year high of $35.88, but above the year’s low of $4.90