Canadian marijuana giant Aurora Cannabis is targeting a listing on the New York Stock Exchange or the Nasdaq in October, an executive said, adding that he “very much” looks forward to calming of the volatility that has sent Tilray (TLRY) stock and other marijuana stocks hurtling through the atmosphere.
The executive, Aurora Cannabis’ chief corporate officer Cam Battley, told IBD that more information about a possible U.S. listing could come next week. Aurora Cannabis, already listed in Canada, reports earnings at that time. News of the possible listing was reported earlier by the Financial Post.
A U.S. listing in October for Aurora Cannabis would follow that of other marijuana stocks. It would also arrive in the same month that recreational legalization takes hold in Canada. Recreational sales begin on Oct. 17.
Canadian marijuana producer Cronos Group (CRON) became the first pure-play marijuana listing on the Nasdaq in February. Canopy Growth (CGC) followed in May with a listing on the New York Stock Exchange. Both companies already traded in Canada.
In July, Tilray (TLRY), which also operates in Canada, became the first U.S. marijuana IPO. Tilray stock nearly doubled in value intraday in Wednesday’s session, closing up 40.5% in a manic session. Shares rallied on a concoction of optimism from its CEO, an approval from the U.S. for a clinical trial, and a limited supply of shares to trade.
Tilray Stock Reverses; Other Marijuana Stocks Advance
But on Thursday, Tilray made a hairpin turn lower. The stock fell nearly 18% in the stock market today. Canopy Growth gained 6.2%. Cronos was up 8.35%. Aurora jumped 12.2% on the Toronto Stock Exchange.
Battley said that valuations in marijuana stocks could come closer to their financials at some point next year.
“I look forward very much to a reduction in volatility in this sector,” Battley said.
Aurora Cannabis Coca-Cola Alliance?
Aurora Cannabis stock got a jolt of its own following a report that the company was in talks with Coca-Cola (KO) to produce cannabis beverages. In a statement this week, Aurora declined to comment.
“The Company does confirm that it engages in exploratory discussions with industry participants from time to time,” it said. “At this time the Company confirms there is no agreement, understanding or arrangement with respect to any partnership with a beverage company.”
Coca-Cola, meanwhile, said no decision had been made on striking a deal with a cannabis company to make infused drinks. But it said it was “closely watching the growth of nonpsychoactive CBD as an ingredient in functional wellness beverages.”
Battley predicted that cannabis would become bigger than the global brewing industry in the next few years. He cited the broader array of ways to consume the plant. He also cited a “wide range of experiences,” or different types of highs that cannabis can produce.
New Age Beverages (NBEV) vaulted 78% Thursday to a record high. New Age Beverages stock is up 390% so far this week after announcing it’ll unveil a CBD-infused drink on Oct. 8.
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