Canadian cannabis giant Aurora Cannabis Inc (NYSE:ACB, TSX:ACB) recovered its mojo Wednesday after a lackluster debut on the New York Stock Exchange, trading strongly in the green on a second wind for the cannabis sector.
Aurora stock opened strong and stayed up 4% to trade at $8.01 in late-morning trade.
Shares of cannabis companies were also broadly higher as the sector was set to snap a six-session streak of losses. In a sign that the recovery had legs, the ETFMG Alternative Harvest ETF climbed 2.7% to $33.89, after falling nearly 23% over the past six days.
The move to the New York Stock Exchange will certainly allow Aurora to draw a broader group of institutional and retail investors.
Analysts and investors weren't unduly worried about Tuesday's lackluster debut and market carnage saying volatility is to be expected in an emerging sector like cannabis.
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.
Aurora will continue to trade on the Toronto Stock Exchange as well, but it will delist its shares from the OTCQX since it is trading on the NYSE.
Contact Uttara Choudhury at uttara@proactiveinvestors.com
Follow her on Twitter: @UttaraProactive