In a move with some precedent in the marijuana industry, bellwether stock Canopy Growth (NYSE:CGC) is shifting its listing to the Nasdaq‘s (NASDAQ:NDAQ) Global Select Market. The shares will begin trading on their new exchange on Monday, Nov. 16, under the same ticker symbol as now, CGC. The transfer will be automatic; current stockholders don’t need to take any action to ensure they continue to own the shares.
A listing on the Nasdaq is cheaper for a company than on Canopy Growth stock’s current venue, the New York Stock Exchange. The company alluded to this in the press release heralding its move.
CEO David Klein said, “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.”
As with most marijuana stocks, Canopy Growth has been struggling with profitability for many quarters. This is due to a host of factors not necessarily under the company’s control, including high taxation rates on licensed marijuana product, the fact that cannabis is still illegal at the federal level in the U.S., and licensing delays in key markets within the company’s native Canada.
Canopy Growth isn’t the first marijuana stock to hop from the NYSE to the Nasdaq. In June, its Canadian peer, Aphria (NASDAQ:APHA), made a similar move. Like Canopy Growth, Aphria cited cost savings as a key reason for its decision.