Aphria (APHA) will no longer be traded through that most classic of American financial institutions, the New York Stock Exchange (NYSE). On Tuesday, the company announced that its shares will move to the Nasdaq (NDAQ -0.91%), beginning at market open on Monday, June 8. The stock will retain its current ticker symbol of APHA.
Aphria said that one of the main reasons for the move was to save money. Listing on the NYSE, considered a prestige exchange, can be very costly, and like many other marijuana companies Aphria has at times struggled with profitability. The company also said the Nasdaq was a better fit given that exchange's emphasis on environmental, social, and governmental (ESG) principles.
"This move is a reflection of our ongoing commitment to find cost-effective ways of operating so we can continue to deliver long-term value to shareholders," it wrote in the press release announcing its decision. "Additionally, as a purpose-driven company, we believe Nasdaq will be a good fit for Aphria, particularly given our focus on, and the progress we have made, integrating ESG practices across our business."
Although Aphria is based in Canada and derives much of its revenue from that country's fully legalized market, its stock has been listed in the U.S. since late 2018. Closer to home, it also trades on the Toronto Stock Exchange.
Investors seemed to be cheered by the news that it will shift to a cheaper listing. On Tuesday its shares rose to close nearly 4.5% higher on the day, well outpacing the gains of the broader stock market.