Shares of cannabis companies were broadly lower Tuesday amid news that one of the largest pot purveyors, Aurora Cannabis Inc., is looking to attract larger U.S. investors by listing on the New York Stock Exchange.
Aurora, an Edmonton-based cannabis cultivation and distribution company, has its shares listed in Canada on the Toronto Stock Exchange ACB, +5.46% and in the U.S. ACBFF, -0.22% on the OTC Markets Group’s OTCQX market. In a release Tuesday morning, the company said it expects its stock to start trading on the NYSE, under the ticker symbol “ACB,” before the end of this month. At that time, Aurora — which officially announced the move while releasing earnings last month — will voluntarily delist from the OTCQX.
The U.S.-listed stock fell 0.4% in afternoon trade, but pared earlier losses of as much as 3.4%, after climbing 11% over the previous two sessions. The stock was up 69% over the past month, while the ETFMG Alternative Harvest exchange-traded fund MJ, +0.14% has rallied 13% and the S&P 500 index SPX, -0.01% has edged up 0.4%.
“Through our NYSE listing, Aurora joins and established group of mature global brands with improved access and exposure to an engaged international institutional audience,” Aurora Chief Executive Terry Booth said in the announcement.
Read more about Aurora’s NYSE-listing plans .
Among other companies in the marijuana business with shares listed on the Big Board, Canopy Growth Corp.’s stock CGC, -2.18% WEED, +3.94% fell 2.1% while Pyxus International Inc. shares PYX, +21.94% shot up 26%.
Canopy Growth said earlier Tuesday that it completed the first legal transfer of cannabis products to a research partner in the U.S. The company believes that marks the first export of legal cannabis products from Canada to the U.S. in the wake of an import permit issued by the U.S. Drug Enforcement Administration. Rival Tilray Inc. TLRY, -7.90% has received DEA permission for a clinical study in the states as well, a decision that was not received well by one U.S. politician.
Canopy shares have run up 67% over the past three months, getting an added boost after Constellation Brands Inc.said in August that it was investing an additional $4 billion in the company. Aurora may be looking to attract a similar investment.
Don’t miss: Cannabis company Canopy Growth’s stock soars 30% as Corona brewer increases stake.
See also: Canopy Growth is ‘at the top of the food chain’ as Canada gears up for legal weed.
Pyxus shares have run up 100% over the past three sessions. On Monday, famed short-seller Citron Research warned against shorting Pyxus, and instead called it a “speculative long,” with “real management” and a tight supply of tradable shares. “The stock could double from here as long as investors are cannabis crazy,” Citron said.
Last week, the company said its indirect Canadian subsidiary, Goldleaf Pharm Inc., had received its Access to Cannabis for Medical Purposes Regulations, or ACMPR, cultivation license from Health Canada.
$PYX would not short...speculative long. Real management and tight float. The stock could double from here as long as investors are Cannabis crazy. Our favorite hire..and it wasn't last week. https://t.co/mPdfuGBVJe
— Citron Research (@CitronResearch) October 8, 2018
Tilray’s stock shed 7.9% Tuesday, but was still up 66% the past month. Cowen & Co. analyst Vivien Azer raised her stock price target to $172 from $62, citing a large total addressable market opportunity supported by existing demand.
“While we had initially focused on the adult use opportunity when we launched on cannabis over two years ago, the well-capitalized cannabis industry has been evolving rapidly and looks to address a far larger TAM than we had originally forecast,” Azer wrote in a note to clients.
Among other more-active cannabis stocks, shares of India Global Capital Inc. IGC, -22.55% tumbled 23%. IGC’s stock has now lost 60% over the past five sessions, after running up nearly sixfold (up 458%) the previous five sessions.
Also read: All the potential red flags for investors in IGC, the pot stock that jumped 1,000% in three months.
Shares of New Age Beverages Corp. NBEV, -18.99% tumbled 19%, but were still up 250% in the past month, Cronos Group Inc. CRON, -1.93% lost 2.6%, Aleafia Health Inc. ALEAF, -8.61% ALEF, +6.33% shed 8.9% and DavidsTea Inc. DTEA, +10.95% rallied 15%.
