Shares of Canadian licensed producer (LP) Aphria (TSX:APH) rose on Tuesday (October 30) following the announcement of the official date of its New York Stock Exchange (NYSE) listing.
Stock of the cannabis company in Toronto jumped on Tuesday by 7.36 percent to C$13.71 as of 12:00 p.m. EST. The LP will officially begin trading on the NYSE on Friday (November 2).
Aphria will change its ticker symbol on the Toronto Stock Exchange (TSX) to align with its NYSE listing to “APHA.” Aphria had obtained official approval from exchange regulators last Wednesday (October 24).
Shares of Aphria have been on a downhill since the start of legalization in Canada, October 17, alongside the rest of the public cannabis sector. Since legalization, the company’s stock has decreased 34.18 percent in value.
Vic Neufeld, CEO of Aphria, said the company will join an “elite” peer group of companies raising capital through American investors.
“Listing on the NYSE provides Aphria with access to the largest equity market in the world, with increased exposure to a vast array of US institutional and retail investors,” he said in the statement.
Aphria confirmed it will voluntarily delist its shares from the OTCQB exchange, which had traded under the ticker symbol “APHQF.”
Obtaining a US listing has proven to increase to the value of a cannabis company and in bringing legitimacy to the rest of the market.
“American investors like to buy American securities listed on the [NYSE] or NASDAQ,” Charles Taerk, president and CEO of Faircourt Asset Management, previously told the Investing News Network.
He went on to explain even though these investors have noticed the growth of the cannabis space, they hadn’t participated in the sector due to this preference.
Don’t forget to follow us @INN_Cannabis for real-time news updates!
Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.