Aurora Cannabis lost 11.4 percent on its first day on the New York Stock Exchange
Aurora Cannabis (NYSE:ACB) made its debut on the New York Stock Exchange yesterday. It was a rough first day that saw the stock slide significantly, ending 11.4 percent down. It was part of the broader sell-off throughout the sector since the start of recreational sales in Canada last week.
Canopy Growth was the first cannabis stock to join the New York Stock Exchange, making its debut in May. It finished Tuesday 1.4 percent down. On the Nasdaq, Tilray ended the day 1.5 percent down while Cronos group fell two percent.
Aurora was approved for the New York Stock Exchange last week following several weeks of hinting that it was readying to list on a major U.S. exchange. For the past few months, the company has been on an acquisition streak in an effort to expand their reach throughout Canada ahead of recreational sales.
The move to gain market share through buying other marijuana companies was risky. It burned through Aurora’s cash in a gamble that a bigger business would fare better during the flood of demand following October 17. It is still too early to tell if it was a good bet, but Canada is already reporting shortages in its newly-legalized adult-use marijuana market.
According to the first consumer studies to come out of the new market, buyers are completely unaware of the branding behind the marijuana they buy. Over 95 percent of consumers did not know which brand of cannabis they had just purchased. Part of this is due to Canada’s strict laws on cannabis product packaging.