A Potential Small-Cap Cannabis Listing to Know About Now

By: Ian Cooper
08:54 01/25/2019

The cannabis story has taken on a life of its own.

In 2018, Canada legalized its recreational use.  Corporate America began investing in major cannabis companies.  U.S. approval ratings for legalization jumped above 61%.  More U.S. states approved its recreational or medicinal use.  The U.S. FDA approved its very first cannabis-derived drug.  Arguably, of the most exciting stories for investors has been the push by marijuana stocks to list of major U.S. exchanges in the U.S. and abroad.

By doing so, cannabis companies draw bigger investors, including institutional investors that aren’t often able to invest in OTC-listed stocks.  While there's nothing wrong with listing on the OTC, a major exchange offers a bigger audience of potential investors, and Wall Street firms.

Some of the Top Pot Stocks to List on a Major Exchange

Cronos Group Inc. (CRON), for example became the first marijuana company to list on the NASDAQ in early 2018.  "It’s very significant for the company and the whole industry," said Mike Gorenstein, Cronos founder and chief executive officer, as quoted by Bloomberg. "It’s a huge moment -- just shows the stigma is continuing to erode on cannabis."

Aurora Cannabis Inc. (ACB) -- one of the biggest Canadian marijuana stocks -- debuted on the New York Stock Exchange in October 2018.  While the stock hasn’t done very well since it listed on a major exchange, investors are still encouraged by the company.

Canopy Growth (CGC) listed on the NYSE in 2018, and has since rallied from $30 to $43 a share.  Making the stock even more attractive, alcohol heavyweights like Constellation Brands invested more than $4 billion in the company.

Even Tilray Inc. (TLRY) and Aphria (APHA) now list on major exchanges.

Which Stocks Will Move to a Major Exchange Next?

One to keep an eye on is CannTrust Holdings (CNTTF) -- which produces and distributes pharmaceutical grade medical cannabis products in Canada. It sells dried cannabis and oil extractions to the client based on the medication document provided by health care practitioner. It also serves up to 50,000 active patients at this time.

In addition, over the last few weeks, the company applied to list its shares on the NYSE.  "CannTrust has firmly established itself as one of the top licensed producers in Canada with a global platform rooted in trust, science and innovation," CannTrust CEO Peter Aceto said. "A listing on the NYSE is a natural step forward in our evolution as we look to broaden our investor base, increase the company's exposure and expand our business on an international scale."

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