In less than 18 months, Canada became a world leader in medical cannabis.
This morning, Canopy Growth Corporation (CGC.V) (TWMJF) announced that the company received conditional approval from the Toronto Stock Exchange (TSX) to move from the TSX Venture Exchange and list its shares on the TSX.
Canopy Growth was the first federally approved, publicly traded cannabis producer in North America when it listed on the TSX Venture Exchange in April 2014.
The company was also the first geographically diversified producer with multiple production licenses and the first in the sector to surpass $100 million market capitalization.
Canopy Growth is now also the first publicly traded cannabis producer to be approved to list on the TSX.
Improves Visibility and Credibility
Listing on the TSX will bring even more visibility and credibility to Canopy Growth as the company pursues domestic and international business.
Final approval of the listing is subject to Canopy meeting certain standard requirements of the TSX on or before September 1st and CGC expects to satisfy all requirements.
The company will announce when it receives final approval and when trading on the TSX will commence. Upon completion of the final listing requirements, Canopy Growth’s common shares will be delisted from the TSX Venture Exchange.
Catalysts on the Horizon
Canopy Growth will announce earnings for the quarter that ended on March 31st before July. We expect to see the company report better-than-expected results as the company continues to expand its presence across Canada.
Medical cannabis became legal in Canada in 2014 and the Liberal Party has announced plans to legalize recreational marijuana in the spring of 2017. For this reason, we continue to view Canada as the best place to invest in the cannabis industry.
We are very favorable on this announcement and view this as a major step forward for the entire cannabis industry. We expect to see OrganiGram (OGI) (OGRMF), Aurora (ACB) (ACBFF), and Aphria (APH) (APHQF) follow in the footsteps of Canopy Growth and improve its respective listing over time.