It was rumored last week that Aurora Cannabis (TSX:ACB) (OTCQX:ACBFF) would list on a 'senior' US exchange, such as the Nasdaq or New York Stock Exchange. The cannabis behemoth confirmed the rumor yesterday whilst simultaneously releasing its Q4 results; a major Aurora US listing is upon us!
Aurora US Listing Coming Soon
The company already lists on the pink sheets in the US under the ticker ACBFF, and upon the confirmation, those shares rose over 9%. At the time of writing, ACBFF stock is moving around a 6.6% gain.
Listing on the NASDAQ or the NYSE signifies massive growth for any company, and Aurora has indeed grown significantly this year. A year of major acquisitions has been sealed by very positive fourth-quarter results.
Q4 results showcased full-year margin growth to 65% from 56% last year. Production rates grew too, the company made 2.2 million kilograms of cannabis and sold 1.6 million this year, cementing its place as the second largest cannabis producer by market cap.
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Aurora upped its average selling price in the fourth quarter too. It upped its average cost per gram of dried cannabis to $8.02 CAD per gram from $7.30 CAD. This was to offset production costs, which rose to an average of $1.70 CAD from $1.52 CAD. This increased revenue margins and didn't hinder sales.
Major Exchange
Aurora will list on a major exchange, and this will give the stock access to a broader pool of investors. The company will essentially be joining the 'big leagues,' giving it a nice ego boost and further signifying it as a leader in the cannabis industry. It will join companies such as Canopy Growth Corp, which lists on the New York Stock Exchange (NYSE:CGC), and Tilray, which lists on the Nasdaq (NASDAQ:TLRY).
About the listing, Terry Booth, CEO of Aurora, said the following:
"Listing our shares on a senior U.S. exchange reflects the level of corporate and business maturity and our high-paced execution."
He continued: "This listing provides access to a broader investor audience who gain the opportunity to participate in our continued success."
Aurora stock has been climbing today on the news and is currently sporting a 7% gain on the Toronto Stock Exchange. Are you excited that Aurora will list on a major exchange? It's not exactly surprising, is it?
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