Canopy Growth Corporation (TSX:WEED) said on Monday it has applied to become the first marijuana producer to be listed on the New York Stock Exchange (NYSE).
Canopy was initially eyeing to be listed on the U.S. Nasdaq Stock Market but chose the world’s largest stock exchange – NYSE – instead to add more credibility to the marijuana producer.
According to 2017 data, companies listed on NYSE have a total market capitalization of $19.6 trillion while the world’s second largest NASDAQ has $7.8 Trillion.
Canopy’s Chief Executive Officer Bruce Linton told the Globe and Mail in a phone interview from Boston that “ultimately one of them is on Wall Street and has a bit more history and cache, and the neighbors on it are pretty substantive companies.”
“One of the primary drivers of this listing is, as we are expanding globally, having U.S. institutional investors helps.”
Linton urged “the investment community” to “drop the pot jokes and talk about the investment grade opportunity.”
Marijuana illegal in the U.S.
Marijuana remains illegal on a federal level in the United States. But Canopy doesn’t have any operations south of the border and is fully compliant with the laws in every country where it operates, Linton said.
The CEO expects the NYSE listing to attract more U.S. institutional investors to his company.
In February Cronos Group Inc. became the first Canadian marijuana company to list on Nasdaq. If approved, Canopy will be the second Canadian company to do so but at NYSE.