The cannabis industry has been in doldrums for many months now and many of the leading companies have seen their stock prices drop at a steady clip. Aphria Inc (TSX:APHA) (NYSE:APHA) is one of the leading cannabis companies in the industry, and on Tuesday, its stock rallied after it emerged that its stock is going to move to NASDAQ.
Moves To NasAdaq
Yesterday the company announced that its shares are going to move from the New York Stock Exchange to NASDAQ, and the change will come into effect on June 8, which is a Monday. This is a significant move from the company, and the move was welcomed by the market.
The stock gained as much as 4.5% on the back of the announcement on Tuesday. It remains to be seen if the Aphria stock can add to those gains through the week. The company revealed that it decided to go for the move due to the high costs of being listed on the NYSE.
An NYSE listing is a matter of prestige, and hence, the costs are often higher. Considering the fact that Aphria has also struggled to generate a profit like many other marijuana companies, the move makes a lot of sense. In addition to that, the company also stated that the ESG (environmental, social, and governmental) principles of NASDAQ make it a natural fit for Aphria.
Aphria, which is among the biggest cannabis producers in the industry, has been listed in the United States since 2018. The Canadian company generates the majority of its revenues from its operations in Canada, and the Aphria shares are also listed on the Toronto Stock Exchange.
The fact that the listing will now be a cheaper proposition for the company has resulted in a wave of optimism among investors, and the gains recorded by the Aphria stock was actually higher than the gains recorded by the wider market on Tuesday.