Yesterday, March 19th, saw Aleafia Health (TSX:ALEF) (OTCQX:ALEAF) uplist to the Toronto Stock Exchange (TSX). Now, ALEF stock is up nearly 5% since the stock began trading on its new exchange. What will uplisting mean for Aleafia? Let's check this out.
ALEF Stock Begins Trading on TSX
The vertically integrated cannabis "health and wellness company" has officially commenced trading on the Toronto exchange. In a press release yesterday, the company confirmed it:
"Aleafia Health Inc. is pleased to confirm that the Company's common shares have commenced trading today on the Toronto Stock Exchange (TSX)"
One day on and trading is already booming. The company is experiencing gains across both its exchanges. ALEAF stock on the OTC is up 5.26%, and ALEF stock on the TSX is up 4.37% at the time of writing.
There's every good reason to believe that these gains may continue.
TSX vs. TSXV
Though not quite as impressive as major American exchanges, such as NASDAQ and NYSE, the Toronto Stock Exchange (TSX) still represents a significant move in the right direction for Aleafia.
The TSX is the bigger brother, if you will, of the TSX Venture Exchange (TSXV), where ALEF stock previously listed. Housing emerging companies—many of which are just finding their feet—the TSXV is suited to smaller companies.
And with a market cap of only $489 million CAD, Aleafia Health is a smaller-sized cannabis company. But uplisting allows growth, and this is vital.
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Graduated
Uplisting to the TSX means Aleafia has graduated from being an 'emerging company'. Trading alongside its bigger, more established peers will bring with it an important sign of legitimacy, and this can only increase investor confidence in the company.
So it's not surprising that both ALEF stock and ALEAF stock are on the rise today. It's also very possible that these gains will continue. Uplisting brings with it increased liquidity and exposure to a wider pool of seasoned investors with deeper pockets.
The Bottom Line
Aleafia describes itself as "a leading, vertically integrated cannabis health and wellness company with four primary business units." Those units are as follows: Cannabis Cultivation & Products, Health & Wellness Clinics, Cannabis Education, and Consumer Experience with e-commerce, retail distribution, and provincial supply.
Covering all areas of the cannabis supply chain puts Aleafia in a strong position. As it jumps up to a bigger exchange, its prospects are only improved. Has Aleafia got what it takes to expand so much that it will eventually land on the NYSE or NASDAQ?
Only time will tell how ALEF stock will fare. But, either way, this is a move in the right direction for any cannabis company and one that should give the company and its shares a nice boost.
What do you think? Are you excited about Aleafia uplisting to the TSX?
Featured Image: Canva
