Weed stocks: Aurora Cannabis ahead of New York Stock Exchange debut

A
worker collects cuttings from a marijuana plant at the Canopy
Growth Corporation facility in Smiths Falls
Thomson Reuters

Aurora Cannabis is plunging Monday, down more than 10%, one
day ahead of the company’s
trading debut on the New York Stock Exchange. 

The Canadian procuder, which grows cannabis for both the
adult-use and medicinal market, has seen its market
capitalization explode by more than 150% since August — to nearly
$10 billion — as both corporate giants and investors have gotten
in on the “green rush” into marijuana. 

On August 15, the beverage maker Constellation Brands announced
it was
investing $4 billion in Aurora rival Canopy Growth, sparking
a wave of interest in the space. 

A month later, Bloomberg reported that
Aurora had held talks with Coca-Cola about developing
beverages infused with CBD, one of the nonpsychoactive
compounds found in cannabis. No deal was announced. 

“Aurora has expressed specific interest in the infused
beverage space, and we intend to enter that market,” an Aurora
spokesperson told Business Insider at the time. 

“There is so much happening in this area right now and we
think it has incredible potential. As a rule, we do not discuss
business-development initiatives until they are finalized;
however, we have a responsibility to our shareholders to give
proper consideration to all relevant opportunities that are
presented.”

And last week,
Canada became the second country in the world to legalize
marijuana, but that didn’t have the impact that investors
were hoping for.
Cannabis stocks got slammed as traders sold the news.

But investors remain optimisitic that Canada’s legalization
is the dawn of a new era for investors. 

“We believe that the legalization in Canada offers a road
map to invest in the companies that will form the basis of the
legal cannabis industry in the coming years,” Jon Trauben, a
managing partner at the cannabis-focused Altitude Investment
Management, said. 

Aurora Cannabis will trade under the ticker “ACB” beginning on
Tuesday. 

Jeremy Berke contributed to this report.