Canadian medical cannabis company Canopy Growth began trading on the New York Stock Exchange under the “CGC” symbol yesterday, but after opening as high as $32.00 in pre-market trading, shares dropped 6.66 percent to $28.20 by the market’s close.
It’s the first cannabis company to list on the NYSE and Midas Letter notes that their first day on the American exchange was similar to that of Canadian producer Cronos Group, who was listed on the Nasdaq in February – the first cannabis company to reach American markets. Cronos ended its first day down 1.80 percent after trading as high as $8.38 a share – 10.99 percent above its open. Both companies are also publicly traded in Canada.
Canopy CEO Bruce Linton said he planned on listing on the Nasdaq but pulled back to finalize the Constellation Brands deal. He added that listing on the NYSE instead of the Nasdaq adds more credibility to the company.
“Five years ago, as a small Smiths Falls based start-up in the cannabis sector, we could have never imagined this historic moment. I am exceptionally proud of our team for what they have built and what we will continue to build by continuing our focus on research, product innovation, and intellectual property to drive the industry forward around the world.” – Linton in a press release
Canopy Growth has signed deals with Quebec and Manitoba to supply the provinces with recreational cannabis.