Aurora, Rumored Coca-Cola Partner, Goes Public on the NYSE
Aurora, one of the biggest producers in Canada, joined Tilray, Cronos Group, and Canopy Growth as the latest cannabis company from the Great White North listed on stock exchanges in the United States. While both Aurora and Coca-Cola have been mum lately about a potential partnership to produce CBD beverages, it isn’t surprising to industry insiders that Big Soda is looking to move into the cannabis industry, albeit cautiously, after seeing other mainstream companies, like Corona owner Constellation Brands has done. Business Insider reported on Aurora’s NYSE listing and potential Coca-Cola deal:
Aurora Cannabis, one of the largest Canadian marijuana producers, is going public on the New York Stock Exchange. When Aurora’s shares start trading on Tuesday morning, the company will join a select list of cannabis producers that are listing on US-based exchanges.
“We believe that the legalization in Canada offers a road map to invest in the companies that will form the basis of the legal cannabis industry in the coming years,” Jon Trauben, a managing partner at the cannabis-focused Altitude Investment Management, previously told Business Insider.
Coca-Cola is reportedly eyeing a deal with Aurora to produce beverages infused with cannabidiol, a nonpsychoactive ingredient in marijuana known as CBD, for the Canadian market.
Analysts and investors, however, said they weren’t surprised to hear the rumors and told Business Insider that it would be a smart move on Coca-Cola’s part.
Aurora shares are down after its listing, along with other cannabis stocks, and the U.S. stock market as a whole, demonstrating the volatility of investing in marijuana businesses (or investing at all). CNN Business on the current status of cannabis stocks:
That sounds an awful lot like internet stocks in the late 1990s. At that time, online shopping was a very small part of the overall retail pie. But companies were falling over themselves to set up e-commerce sites.Marijuana — both for recreational and medical purposes — may eventually become a major business. But not everyone will become the Amazon of pot. More companies will lose than win.Terry Booth, CEO of Aurora, is bullish though. He said in a release about the NYSE listing earlier this month that Aurora intends to “meet the growing demand for high-quality cannabis both in Canada and abroad” and is also working on “scientific research into medical applications of cannabis.”