Demand in the new year for marijuana stocks has been strong, as investors seek to rebound from their losses in 2018. That has many cannabis companies looking to make their shares more readily available to investors in the U.S. market.
Last year, several up-and-coming players in the cannabis space listed their shares on U.S. stock exchanges, either through dual listings in addition to their already-public shares on Canadian exchanges or by going straight to an initial public offering in the U.S. Today, Canadian cannabis producer CannTrust Holdings (NASDAQOTH:CNTTF) became the latest marijuana stock to seek a place on the New York Stock Exchange. By doing so, the company hopes to draw more attention in an increasingly crowded space for marijuana-related businesses…
In a press release, CannTrust simply stated that it has applied to list its common shares on the New York Stock Exchange. The listing request is subject to approval of the exchange, and CannTrust will have to meet all the listing requirements in order to have its shares offered there. Among those requirements is filing a registration statement with the U.S. Securities and Exchange Commission, which the company has done. Although CannTrust didn’t predict when it will first trade on the NYSE, it committed to doing so once it’s gotten all the approvals it needs to move forward.
CannTrust sees the value of a NYSE listing both for its reputation and for access to capital. In CEO Peter Aceto’s words, “CannTrust has firmly established itself as one of the top licensed producers in Canada, with a global platform rooted in trust, science, and innovation. 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.”
Late to the game?
Some detractors will argue that CannTrust took longer than it needed to before making this move. After all, several other companies were quicker to get themselves listed on U.S. exchanges…
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