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Weekly Cannabis Report: Nasdaq Listing = 37% Pop In Share Price

Cornerstone Investments profile picture
Cornerstone Investments


  • Cronos became the first Canadian cannabis company to list to Nasdaq.
  • Canopy disclosed plans to list on Nasdaq after Cronos move.
  • We expanded Cannabis Index to include U.S. and Australian companies.

Welcome to our Weekly Cannabis Report, a reliable source for investors to receive the latest developments and critical analysis for the cannabis sector.

Weekly Note to Readers

The bright spot in the cannabis space last week was Cronos Group which became the first Canadian cannabis company to be listed on the Nasdaq. Cronos share price jumped 37% after the listing announcement, a clear demonstration of the benefits of having direct access to the U.S. stock market. Many readers have complained to us the onerous fees and limitations for trading OTC stocks, and we think Cronos' Nasdaq listing will create tangible benefits and attractiveness to U.S. investors. We think the success for Cronos will attract many other Canadian cannabis companies to seek Nasdaq listing.

Canopy Growth said at an event that it will also seek a Nasdaq listing. No timeline was given but Bruce Linton told a group of audience that his company has already started working on a Nasdaq listing, only to be superseded by Cronos. We think U.S. listing would benefit any company immensely by having direct access to the largest stock market in the world. U.S. investors have long been investing in Canadian cannabis companies, and we believe many are happy to hear that these companies are finally coming to Nasdaq. We think Canopy will likely announce its Nasdaq listing in the next few months and share price should benefit from such announcement.

We also highlighted the fallout from Maricann's $70 million after three directors and chief executive was investigated by OSC over suspicious personal trading and other matters. January and February saw a large number of cannabis companies issue equity to take advantage of the hot market. However, Maricann reminds us that management and board governance should become an important due diligence item for investors. Maricann will most likely be shut out

This article was written by

Cornerstone Investments profile picture
We are your best guide to cannabis investing. Read our 2021 Cannabis Sector Outlook here. We also provide in-depth industry analysis and coverage of 70+ cannabis stocks to help you get started.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (27)

09 Mar. 2018
Just checking to see if any contributors plan to cover an in depth analysis of Wildflower (WLDFF). They just reported a 620% increase in revenue year/year from exposure to the California market from their quarterly results on March 1.
Not sure of your criteria, but why not follow Future Farm Technology?
Cornerstone Investments profile picture
we will look into adding it
falainwest profile picture

great move if it goes through.
Right now the tariff talk has led to Trump asking for a renegotiation of NAFTA. If anything, if they start talking about ripping up NAFTA that might scare away a lot of investors.

For those folks who are hoping for Jeff Sessions to get the boot... getting rid of Sessions alone will not open door to legalization across the US. Trump and the Republicans are still in charge and they will continue to try to push the conservative agenda.

Sessions or not, I think it will still come down to a state-by-state vote, and it will gradually be legalized in more places: Colorado, Nevada and California has already legalized it. Massachusetts is coming, and NY is probably not that far behind.
Leonardo_Pisano profile picture
Chambers, there are AFAIK at present 5 US states that have legalized recreational use and 29 that have legalized medicinal use (and counting). The WHO has changed its negative position to neutral+ on cannabis and with Australia, Canada and some EU countries (incl Germany) easing or about to ease their legal situation, I strongly believe it's a matter of time the fed US will follow. My speculative guess is 3-5 years from now.
Actually 9 states have rec
is the tariff war causing a collateral benefit to MJ stocks? is MJ immune to canadian economic collapse due to tariff war?
Cornerstone Investments profile picture
Canadian weed firms aren’t legally exporting to US in any large scale given it’s still illegal on the federal level
why the jump in Canopy price today?
still reacting to Thursday's news of a pending move from otc to nasdaq I guess
Cornerstone Investments profile picture
Likely the news of Nasdaq listing. The whole sector rallied today.
Hi Can you please add I-anthus holdings .This is an exciting USA play with first mover advantage and gaining a presence in the many of the states
Cornerstone Investments profile picture
Will do next week.
Thank you
jesus7 profile picture
The South district NY court is sad. Sune, Murex/fnbc; I would buy a fleece logo hoodie from the gift shop thou.
Cornerstone Investments profile picture
Get one for me!
Moats and Income profile picture
Are US cannabis stock listings at risk if since they violate US Federal Law?
Not foreign companies like Canopy or Aurora as long as they don't do bussiness with mj in the US. Companies like Aphria probably can't be listed on the Nasdaq
Cornerstone Investments profile picture
US companies that violate federal law won’t be allowed to get listed in the first place.
jesus7 profile picture
Canadian buyout and some legal fees if TRTC wanted to go that route?
Maybe why they are basically vesting(share lockup)?! Makes it way easier to negotiate.
I smell buyout smoke..Anyone else?
Long Horns profile picture
Are you still long on Canopy? I would like to jump back (with Canopy and possibly Aurora as well) in at some point but I am still nervous about noise coming from the Conservative wing in Canadian Parliament - forcing the June 1st vote and signaling they will continue using all possible tactics to delay if not block full legalization. Thoughts?
Cornerstone Investments profile picture
We legislative risk is low in Canada now. We’ll publish a piece on that either this week or next. Stay tuned.
22thoroughbred profile picture
Don’t let political noise be a factor, US or Canada, conservative or liberal, they say what their base wants to hear and every day can be a different objective. If u like a co. based on its merits then buy, but the rest is just outside distractions
Alan Brochstein, CFA profile picture
Is your index posted anywhere? What is the weighting scheme?
Cornerstone Investments profile picture
As you can see we only show individual performance of the stocks we track for now. Once we settle on our core group of companies we hope to have an index weighted by market cap.
Leonardo_Pisano profile picture
Alan, whilst not CI's index, you might like: https://www.3cindex.ca
which tracks the top 20 stocks afaik. Mind you, the stock prices have a 15 min delay.
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