Canadian cannabis giant Aurora Cannabis Inc’s (NYSE:ACB; TSX:ACB) much-hyped debut Tuesday on the New York Stock Exchange was weighed down by a broad market pullback.
Shares in the cannabis grower closed 11.3% down to $7.70 on a day when marijuana stocks suffered broad and sharp losses.
Cannabis stocks were headed for their worst six-session skid Tuesday in over eight months as full-legalization in Canada appears to have dampened enthusiasm among pot investors despite early indications of strong demand.
READ: Marijuana stocks continue to burn out as North American Marijuana Index falls double digits
Key stocks in the budding cannabis sector like Aurora and Tilray Inc (NASDAQ:TLRY) have lost more than 20% in the past week — a figure that is typically used to measure a bear market.
Aurora will continue to trade on the Toronto Stock Exchange as well, but it will delist its shares from the OTCQX with trading on the NYSE.
"Our NYSE listing represents another important milestone that reflects our commitment to all stakeholders as we continue advancing domestic and international growth initiatives, which includes expanding our base of global institutional and retail investors," said Aurora CEO Terry Booth giving his rationale for a dual listing.
The move will certainly allow the company to draw a broader group of institutional and retail investors.
Based in Edmonton, Alberta, Aurora is one of the largest cannabis companies, as it has the production capacity of more than 500,000 kilograms per year, with operations in 18 countries.
With a market cap of $8.37 billion, it competes with the likes of Canopy Growth Corp ( (TSX:WEED; NYSE:CGC) which has a market cap of 8.76 billion and Tilray, which has a market cap of $ 10.22 billion. Its acquisitions total 15 companies, including MedReleaf and the pending acquisition of ICC Labs, a leader in the South American cannabis market.
Contact Uttara Choudhury at uttara@proactiveinvestors.com
Follow her on Twitter: @UttaraProactive
-- Updates with closing price --