Canadian cannabis producer Aphria shifts U.S. stock market US listing from NYSE to NASDAQ

Bethan Rose Jenkins, Cannabis News Writer/Editorial

Major Canadian cannabis producer Aphria is abandoning the New York Stock Exchange (NYSE) for the National Association of Securities Dealers Automated Quotations System (NASDAQ). Cannabis stock traders can expect to see the newly-added Aphria listing on NASDAQ following the market’s closure on Friday, June 5.

Monday, June 8 is the date pinned for the Canadian cannabis producer’s debut on the NASDAQ. Aphria’s cannabis stocks will be recognizable under the company’s usual ‘APHA’ ticker symbol; the ticker symbol will not be changed.

Chief Executive Officer (CEO) of Aphria, Irwin Simon, issued a news release confirming the announcement on Tuesday, May 26. He believes that the Ontario-born company has demonstrated its “ongoing commitment to find cost-effective ways of operating so we can continue to deliver long-term value to shareholders.”

Although it remains uncertain as to precisely why Aphria has left the NYSE for NASDAQ, industry analysts have pointed to the fact that it is cheaper to list pot stocks on the NASDAQ exchange than it is on the NYSE. 

Jeffries equity analyst Owen Bennett is in agreement that this is likely the reason why Aphria listing on NASDAQ is taking place. In a recent note to clients, Bennett wrote about how “the reduced transaction fees involved in issuance/conversion/cancellation of shares” are beneficial for publicly-trading cannabis companies.

Aphria published its fourth consecutive profitable quarter this April

Aphria, which is based in Leamington, Ontario, will also continue to trade on the Toronto Stock Exchange, where it trades under the ticker ‘APHA’ — just like it did on the NYSE. While it may be moving to the NASDAQ from the NYSE, Aphria’s investors shouldn’t be worried. After all, recently-published financial statements indicated that the Canadian cannabis company’s net revenue just climbed 65 percent. 

On April 14, 2020, Aphria reported its financial results for the third quarter that concluded on February 29, 2020. Some key takeaways from the company’s operating highlights were as follows:

  • The gross revenue for adult-use cannabis was CAD $44.7 million during the third quarter (Q3) – representing 54 percent growth from the previous and the fifth successive quarter of growth
  • Aphria’s net cannabis revenue was $55.6 million for Q3 – 65 percent more than the previous quarter.

Another leading Canadian cannabis producer recently received a warning 

Hexo – a trusted Canadian medical cannabis company recognized for its award-winning smokeless product innovations – also recently announced that its shares would be disappearing from the NYSE. Why? Because they sunk under the $1 mark; the company received a notification on May 13 about its non-compliance with the exchange for a consecutive 30-day period.

On April 27, Canadian cannabis firm CannTrust – which has been drowning since its second unlicensed cultivation facility was exposed in August of last year – saw its pot stock listing vanish from the NYSE. The delisting was anxiously anticipated, what with the company obtaining a creditor protection order the previous month.

The NYSE didn’t waste any time in warning Aurora Cannabis, either. Headquartered in Edmonton, Aurora recently had no choice but to merge its shares on a 12-to-1 basis to ensure its listing wasn’t removed from the pot stock-trading system.