Canadian cannabis company Canopy Growth Corp. said it will transfer its U.S. stock exchange listing from the New York Stock Exchange or NYSE to the Nasdaq Global Select Market. The change will be effective after market close on November 13, 2020.
Canopy Growth said its shares are expected to commence trading as a Nasdaq-listed security on November 16, 2020, with the shares continuing to trade under the symbol "CGC".
Canopy Growth is following in the footsteps of its peer Aphria Inc., which announced a similar move in May this year. Canopy Growth's shares also trade on the Toronto Stock Exchange under the symbol, "WEED.TO".
"By making the move over to Nasdaq, we are joining some of the world's leading companies that share our passion and focus for innovation. Making the transition to Nasdaq also provides us with greater cost-effectiveness and access to a suite of tools and services that will help us connect more efficiently with our current and future investors," said David Klein, CEO of Canopy Growth.
Canopy Growth said its current retail and institutional investor shares will automatically be transferred over to Nasdaq. Current shareholders are not required to take any action.
Canopy Growth's move to transfer the stock exchange listing to the Nasdaq is part of its efforts to reduce costs. Listing fees on the Nasdaq is usually lower than that of the NYSE, while the transaction fees for the conversion, issuance or cancellation of shares are also lower on the Nasdaq.
Canopy Growth, in August, reported that its net loss for first quarter narrowed to C$108.50 million or C$0.30 per share from C$185.87 million or C$0.54 per share in the year-ago period. Revenue increased to C$119.09 million from C$103.39 million a year ago.
In late May, Aphria said it will transfer its stock exchange listing from NYSE to the Nasdaq Global Select Market. The company had earlier taken steps to strengthen its balance sheet and reduce debt.
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