Cannabis stocks have skyrocketed this week ahead of the anticipated legalization of marijuana in Canada and an encouraging announcement from the world's largest weed company, Tilray Inc. (TLRY) regarding an approval from Drug Enforcement Administration (DEA) to import weed to the U.S. for medical research. The rally looks like it will extend into October as Alberta-based Aurora Cannabis Inc. plans to list its shares on a major U.S. stock exchange by next month, as first reported by the Financial Post.
Dual Listing to Broaden Scope of Would-Be Pot Investors
In an interview with the Financial Post on Tuesday, Aurora's Chief Corporate Officer Cam Battley indicated that the dual-listing would help broaden the scope of Aurora's would-be investors, which he said includes "U.S. institutional investors, not all of whom are able to trade in OTC-listed securities."
The Toronto-listed stock is currently available for purchase as an over the counter (OTC) market ticker which allows US investors to purchase shares in foreign-listed companies.
Battley told the Post that the weed producer will "look at all exchanges," and that it will look at the New York Stock Exchange (NYSE). He added that there may be additional information available after Aurora posts earnings next week.
On Wednesday, Robinhood, a zero-fee brokerage platform popular among Millennial investors, suspended new buying of Aurora Cannabis due to heightened demand for the stock. "This is happening because there's limited support at execution venues for the large volume of ACBFF orders we've received," Robinhood told users, according to Business Insider.
Aurora's dual listing would follow suit of fellow Canadian cannabis companies Tilray Inc. (TLRY) and Canopy Growth Corp. (CGC), which have sharply outperformed the broader market after their U.S. public offerings.
Earlier this week, BNN Bloomberg first reported that beverage giant Coca Cola Co. (KO) was in talks with Aurora to develop a drink infused with CBD, the non-psychoactive ingredient in marijuana that treats pain.
Shares of Aurora are up 8.3% on Thursday afternoon at $9.14, reflecting a 19.8% gain year-to-date (YTD) compared to the S&P 500's 9.6% return over the same period.