Aurora Cannabis (TSX:ACB) will make its debut on the New York Stock Exchange tomorrow under the ticker ‘ACB,’ but currently, its shares on the TSX are plunging.
Aurora Cannabis on the NYSE
Aurora Cannabis is headquartered in Edmonton, Alberta, and produces and distributes medical cannabis across Canada and internationally.
Currently, Aurora Cannabis holds collaborative agreements with Pharma Choice, Pharmasave, and Shoppers Drug Mart for the distribution and sale of medical cannabis throughout these pharmacies.
Aurora isn’t the first Canadian cannabis company to be listed on the New York Stock Exchange as of late. Canopy Growth Corporation (NYSE:CGC), another Canadian-based cannabis company, listed on the major exchange in May of this year.
On August 15th, the beverage maker Constellation Brands (NYSE:STZ) announced it was investing $4 billion in Canopy Growth—which sparked a huge wave of investor interest in the space. Almost a month later, reports circulated that Aurora Cannabis was in talks with Coca-Cola (NYSE:KO) about developing beverages infused with CBD. No such deal was announced, but it pushed the stock up even more due to the possibility.
Last Wednesday, recreational cannabis was legalized across Canada—making it the second country ever to do so. At that time, cannabis stocks got slammed as traders sold on the news. Towards the end of the week, however, the stocks began to rebound.
Despite the ups and downs of cannabis stocks this past week, investors remain optimistic.
“We believe that the legalization in Canada offers a road map to invest in the companies that will form the basis of the legal cannabis industry in the coming years,” Jon Trauben, a managing partner at the cannabis-focused Altitude Investment Management, said.
Cannabis Stock Movement
Today, however, marks another market correction for the cannabis industry as red has spread across the board.
According to Yahoo Finance, Aurora shares are currently trading at $11.71, down -$1.30 (-9.99%). Canopy Growth is also down, trading at $54.81 a share on the TSX, which puts it down -$6.49 (-10.59%).
Will ACB rebound tomorrow on its NYSE listing day? We shall soon find out!
Featured Image: Depositphotos/© konstantin32