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Aurora Cannabis, one of the largest marijuana growers in Canada, is listed on the New York Stock Exchange. When Aurora shares begin trading on Tuesday morning, she will join a select list of cannabis growers listed on US-based stock exchanges.
While US-based exchanges were initially reluctant to list Canadian marijuana growers, companies such as Tilray (which launched an initial public offering on NASDAQ in July), the Cronos Group and Canopy Growth are now listed on US stock exchanges.
"We believe that legalization in Canada provides a road map for investing in companies that will form the basis of the legal cannabis industry in the coming years," said Jon Trauben, Managing Partner at Altitude Investment Management, a business focused on cannabis. Internal business.
To be listed on a US stock exchange such as the NYSE, cannabis producers must prove that they do not violate any federal law by importing cannabis into the United States, except in special circumstances.
Read more: Some of the fastest-growing companies in the booming cannabis sector are hiring more and more penitentiaries as the legal marijuana market in Canada opens
Aurora is currently listed on the Toronto Stock Exchange under the symbol ACB. The Edmonton-based grower or licensed grower cultivates cannabis for the adult market and drugs.
Aurora's market capitalization has increased by more than 100% since mid-August. On August 15, beverage giant Constellation Brands announced a $ 4 billion increase in its stake in Canopy Growth, its rival.
Last week, marijuana is legal in Canada. Legalization in Canada, however, has not had the impact expected by most investors. Stocks were criticized when traders dumped. Aurora fell more than 12% Monday in the prospect of Tuesday's listing on the New York Stock Exchange.
Coca-Cola studies the possibility of producing CBD-based drinks with Aurora
Coca-Cola plans to enter into an agreement with Aurora to produce infused cannabidiol (CBD) beverages, a non-psychoactive ingredient in marijuana for the Canadian market.
Neither company confirmed the rumors when contacted by Business Insider.
Analysts and investors, however, said that they were not surprised to hear the rumors and told Business Insider that it would be a smart decision on the part of Coca-Cola.
"We are seeing leading companies, as well as institutional investors, become aware of the opportunities that arise in the space," said Ben Kovler, CEO of Green Thumb Industries, a publicly traded company.
Cannabis companies still have problems. On the one hand, banks are not willing to lend money to companies that deal in marijuana, this plant being considered an illegal drug of Schedule I by the US federal government .
"The challenge remains that until the US government softens its cannabis program, companies like Coca-Cola will be stranded to produce innovative cannabis products with US operators," said Kevin Murphy, chief executive of the company. Acreage Holdings, which has former politicians like John Boehner. advice, says.
Aurora is also hiring wildly with the opening of the legal marijuana market in Canada. The company offers 11 pages of job postings on its website. These positions are located across Canada and range from senior management positions to laboratory research and industrial cleaning positions.
For some cannabis companies, listing on a US-based stock exchange is a good deal – but it will not be easier for companies to do so until the federal government changes position.
"Canada has that big, staggering finger that tells us in the United States," How come you can not get your things together? Adam Bierman, CEO of the MedMen cannabis channel, told Business Insider.
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