Canadian Marijuana Grower to List on NYSE
Canopy Growth is the largest North American marijuana firm based on its market cap of $4.72 billion. The company’s stock currently trades on the Toronto Stock Exchange under the ticker symbol WEED and over-the-counter in the United States (TWMJF). Now the Ontario-based firm says it has applied for a listing on the New York Stock Exchange under the ticker symbol CGC. Bummer.
Canopy Growth is a diversified cannabis company that produces and sells legal marijuana in the Canadian medical market. When legal recreational sales begin later this year in Canada, Canopy Growth is expected to prosper.
Regardless of what happens in the United States concerning legalization of marijuana for medical or recreational use, Canopy Growth has a legal market to tap in Canada that generated some $5.7 billion in cannabis sales last year.
Unfortunately, 90% of that estimated revenue was generated by illegal sales, according to Statistics Canada. Illegal production of cannabis for nonmedical purposes totaled $4.6 billion last year, compared with less than $400 million for production of medical cannabis.
Canopy Growth CEO Bruce Linton said:
Since becoming the first regulated cannabis producer to list their shares in North America in 2014 our team has focused on building credibility through consistent execution. Once finalized, listing our shares on the NYSE will represent a continuation of our upward trajectory as we build the global cannabis industry.
Once legal recreational use of marijuana rolls out in Canada, companies like Canopy Growth should see an increase in legal sales, but it is not likely that they’ll pick up all Canada’s illegal retail sales. And the only global cannabis industry remains the black market. That may change over time, but not any time soon.
Canopy Growth shares closed at C$30.30 (about US$23.76) on the TSX Friday, up about 1.9% for the day. The stock has lost about 6.4% of its value since January but remains up more than 266% after reaching a 12-month peak of up more than 400% in early January. The 12-month price target on the stock is C$47.06. The company will continue to trade shares on the TSX after it receives its NYSE listing.