Canadian cannabis company Canopy Growth began trading Thursday on the New York Stock Exchange, the first plant-touching marijuana company to be listed on the venerable exchange.
The first day was perhaps a bit of a disappointment to investors, who saw the firm’s share price drop more than 6 percent to close at $28.68 on Thursday, but CEO Bruce Linton downplayed the first day drop saying the company was more interested in longer term performance. The company has seen major stock success before, having seen its stock on the Toronto exchange go up nearly 400 percent in value in the last year.
Still, the company’s foray into the American stock trade continued to disappoint on Friday, sliding another 4.7 percent by early afternoon to $26.86.
But the trading itself remained a major first. The company, based in Smiths Falls, Ontario, is trading under the ticker symbol CGC.
Canopy Growth is Canada’s largest legal marijuana producer, and supplies more than a third of the medical cannabis users in the country. The company is thought to be positioned very well to take advantage of Canada’s expected transition to legalized non-medical marijuana this year. The company had a market capitalization of more than $6 billion as of earlier this year.
Canopy Growth also made big news in Canada last year when the big alcoholic beverage company Constellation Brands bought a minority stake in the company. Constellation owns brands including Corona Beer, Robert Mondavi wines and Svedka vodka.
“We’re a company focused on leadership, vision, and integrity and listing on one of the most prestigious exchanges in the world validates the level of execution and ambition our team has demonstrated,” said Linton, who will speak next week at the CWCBExpo in New York. . “Five years ago, as a small Smiths Falls based start-up in the cannabis sector, we could have never imagined this historic moment. I am exceptionally proud of our team for what they have built and what we will continue to build by continuing our focus on research, product innovation, and intellectual property to drive the industry forward around the world.”
Another Canadian marijuana company, Cronos, is publicly traded on the Nasdaq.