The cannabis industry is projected to reach C$22.6 billion by 2026, according to Cowen & Co., driven by the legalization of adult-use cannabis earlier this year. While Canadian investors have been voracious buyers, many companies have expanded their efforts to reach United States and European investors through dual-listings. These dual-listings offer the ability to increase liquidity, reach more investors, and ultimately, generate more value.
In this article, CFN takes a a look at why cannabis is leading the way in dual-listings and how companies like us, NexTech AR Solutions Inc. (CSE: NTAR) (FSE: N29), are capitalizing on these dynamics to build long-term shareholder value.
CFN NEWS SUMMARY:
Where You List Matters
Most North American investors are familiar with U.S. and Canadian stock exchanges, such as the NYSE, NASDAQ, CSE and TSX, but these exchanges only reach investors in those countries. European investors don’t have an easy way to buy securities on these exchanges—just like North American investors can’t easily access European exchanges. These dynamics can limit investor access to public companies on a global level.
Dual listings, also known as interlistings or cross-listings, enable public companies to list their securities on two or more different exchanges. These listings provide access to greater liquidity, more capital, and longer trading hours. For example, many Australian and Canadian resource companies list their shares on European exchanges because there’s substantial investor interest due to the lack of local resource companies…
Cannabis Leads the Way
Many small-cap companies have leveraged dual listings to help build a more diverse shareholder base and raise more capital at less cost. In particular, small-cap companies that operate in industries that aren’t necessarily available overseas have an opportunity to attract a large number of investors and raise more capital. The most prominent industry meeting these criteria is Canada’s nascent cannabis industry…
Many Canadian companies have sought dual listings to capitalize on these dynamics. For example, NexTech AR Solutions Inc. (CSE: NTAR) recently announced its new listing on the Frankfurt Stock Exchange (FSE: N29), which is the largest European stock exchange. The company’s plans to combine augmented reality with the cannabis industry could open the door to significant long-term growth opportunities…
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