Canopy Growth becomes first plant-touching cannabis company on NYSE

The New York Stock Exchange listed its first cannabis cultivator Thursday, marking a key milestone that analysts say makes the business extra accessible to institutional and retail buyers – and will draw giant American banks to the sector.

But in its NYSE debut, Ontario-based Canopy Growth obtained a cold reception from buyers. It closed the day down 6.7%, at $28.20.

By comparability, the Marijuana Index, which tracks 41 main medical cannabis shares, misplaced 2.09%. However, the Dow Jones Industrial Average shed simply zero.three%.

Canopy Growth CEO Bruce Linton stated the itemizing opens the doorways to the most important buyers and establishments within the United States.

“As we are increasingly global, I am going to have more institutional support. And this is the most comfortable on-ramp for them,” he informed Marijuana Business Daily.

Canopy is lively in eight nations.

“This is the most reputable market in the world, and this is where you want to be listed,” stated Sean Stiefel, portfolio supervisor at Navy Capital in New York. “It makes people much more inclined to transact and bank cannabis securities when they’re on the two major exchanges in the U.S.”

He stated giant U.S. banks concerned in authorized cannabis “increases many multiples” when shares are on the NYSE and Nasdaq versus any of the Canadian exchanges.

“There’s a lot of issues related to prime brokerage and clearing, and what banks will trade. But now by being on the New York Stock Exchange you alleviate all those,” he stated.

Canopy Growth follows Ontario-based Cronos Group as the one absolutely built-in medical marijuana corporations traded on the 2 prime inventory markets within the United States.

Cronos began buying and selling on the Nasdaq underneath the ticker image CRON in February.

But the listings don’t portend a flood of marijuana corporations looking for listings on the NYSE and Nasdaq, specialists say.

Chris Damas, editor of the Barrie, Ontario-based BCMI Cannabis Report, stated extra stringent necessities within the United States current hurdles for any Canadian marijuana company contemplating the transfer.

“I doubt more companies will be seeking an NYSE listing,” he stated, “because their boards are too small, there aren’t enough independent directors and the chairman is often the president and CEO.”

Matt Lamers may be reached at [email protected]

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