Canopy Growth is looking to take its pot potential to American investors as the country’s largest cannabis company continues to consolidate its production.
The Smiths Falls-based cannabis producer announced Monday morning that it has applied to list its shares on the New York Stock Exchange under the symbol CGC. The firm will retain its Toronto Stock Exchange position under the ticker name WEED.
If the firm clears regulatory hurdles, Canopy expects to be trading on the NYSE by the end of the month.
"Since becoming the first regulated cannabis producer to list their shares in North America in 2014 our team has focused on building credibility through consistent execution,” said CEO Bruce Linton in a statement. “Once finalized, listing our shares on the NYSE will represent a continuation of our upward trajectory as we build the global cannabis industry."
Canopy also announced Monday that it would acquire the remaining stake in BC Tweed, a large-scale growing operation in British Columbia formed through a joint venture with an undisclosed partner. First established last October, the facilities are currently licensed for 1.7 million square feet of production space with a full capacity for an additional 1.3 million square feet.
If approved, the deal will see Canopy absorb the remaining 33 per cent ownership stake in the venture and pay out shares worth up to $374 million to the minority shareholders, who will continue to operate the greenhouse. The agreement includes an extra $1 million in cash as a deposit on the purchase price and $20 million in common shares with an option to acquire future infrastructure from the operators.
Consolidation in the Canadian cannabis sector has been accelerating as the country prepares to legalize pot for recreational use later this year. Elsewhere on Monday, Vancouver’s Aurora Cannabis announced it had inked a friendly deal to acquire Markham’s MedReleaf in an all-stock transaction valued at $3.2 billion, creating a company capable of producing more than 570,000 kilograms of cannabis per year.
– With reporting by the Canadian Press.