Aurora Cannabis (Aurora Cannabis Stock Quote, Chart TSX:ACB) shares have been on a tear as of late, reaching highs not seen since January. The reason? With only a week left before recreational pot becomes a reality, Aurora’s stock is jumping on news of talks with Coca-Cola and, today, indications that ACB will soon be trading on the NYSE.
Andrew Bell of BNN Bloomberg says the US listing will only heighten interest in Aurora.
Like many in Canada’s pot sector, the past month and a half has been good to Aurora’s share price, which began mid-August by benefitting from an announced deal between sector-leading Canopy Growth Corp. (Canopy Growth Corp Stock Quote, Chart TSX:WEED, NYSE:CGC) and beer and alcohol company Constellation Brands. The $5 billion deal effectively gave investors more reason to believe that the fledgling industry was for real, prompting double and in some cases triple-digit growth across the sector.
Aurora’s share price went from a low of $5.29 on August 14 to where it currently sits at $13.24, a 150 per cent increase in value. Shares jumped in mid-September on a BNN Bloomberg report that Aurora was speaking with Coca-Cola about developing cannabis-infused beverages, particularly in reference to potential non-psychoactive CBD-infused products. The news has since been downgraded, with Aurora stating that although it frequently engages in exploratory discussions with industry participants, it has no formal agreement to partner with a beverage company.
But today’s announcement is providing another shot of adrenalin to ACB, which stated that it has filed an application to list on the NYSE.
“Through our NYSE listing, Aurora joins an established group of mature global brands with improved access and exposure to an engaged international institutional investor audience,” said Terry Booth, CEO of Aurora. “Aurora’s high-paced execution has made it one of the world’s leading cannabis companies. We have grown from being a licensed producer with a single facility, to a horizontality differentiated and vertically integrated global organization with a funded production capacity in excess of 500,000 kg a year, sales and operations on five continents, and a team of more than 1,500 employees.”
Aurora Cannabis NYSE listing could be a boon
Bell says the listing will benefit Aurora, which has done its share of major moves in the cannabis space over the past year, including the acquisition of pot co’s CanniMed and MedReleaf.
“Why not? You just attract a much bigger investor constituency,” says Bell on BNN Bloomberg. “Of course, you might want to use your shares for currency, and has Aurora ever done that — their shares outstanding are almost a billion.”
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“The stock was out of favour amid concerns among some investors that the pace of acquisitions was excessive. Some investors were concerned that they might be biting off more than can be assimilated in the near term,” he said. “But you can see that the stock has come back fairly sharply since the lows of this summer.
Aurora Cannabis will be following Canadian companies Tilray (Tilray Stock Quote, Chart NASDAQ:TLRY), Canopy Growth and Cronos Group (Cronos Group Stock Quote, Chart TSX, NASDAQ:CRON) with listings in the United States.