In this market news, Aphria Inc. (TSX:APHA) (NYSE:APHA), one of the Canadian marijuana stocks, said its shares have been approved for listing on the New York Stock Exchange (NYSE)
SmallCapPower | November 2, 2018: Aphria Inc. (TSX:APHA) (NYSE:APHA), one of the Canadian cannabis stocks, Tuesday announced that its shares have been approved for listing on the New York Stock Exchange (NYSE) and will begin trading effective November 2, 2018 under the symbol “APHA.” As part of the U.S. listing, the Company’s TSX ticker symbol will also be changed to “APHA” from the current “APH.” Existing shares of Aphria trading on the OTCQB will be delisted and will automatically trade on the NYSE.
Aphria is the fifth Canadian cannabis stock to list on a U.S. exchange, the others being Tilray, Inc. (NASDAQ:TLRY), Aurora Cannabis Inc. (NYSE:ACB), Canopy Growth Corporation (NYSE:CGC), and Cronos Group (NASDAQ:CRON).
Following the announcement, shares of Aphria gained 4% on Tuesday followed by a nearly 18% surge Wednesday on both the TSX and the US OTC, closing at $15.7 and US$11.94, respectively. The Company’s share price could continue its upward momentum as was the case with some of the other Canadian cannabis stocks’ performance heading into and post the U.S. listing. Canopy Growth and Cronos Group, for example, were up more than 30% within two weeks of their listing announcement. Additionally, the lower valuation of Aphria compared to its U.S.-listed cannabis peers could drive its shares higher over the coming weeks.
Vic Neufeld, CEO of Aphria, said “Listing on the NYSE provides Aphria with access to the largest equity market in the world, with increased exposure to a vast array of U.S. institutional and retail investors. This strategic move aligns directly with our growth ambitions as we enter an elite peer group of respected, high-profile corporate brands listed on the NYSE.”
Aphria stock currently trades at a market cap of $3.9 billion on the TSX with a price to book multiple of 2.83x.
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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