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Aurora Cannabis is plunging ahead of its debut on the New York Stock Exchange

Jonathan Garber
A worker collects cuttings from a marijuana plant at the Canopy Growth Corporation facility in Smiths Falls, Ontario, Canada, January 4, 2018. REUTERS/Chris Wattie

Thomson Reuters


Aurora Cannabis was plunging Monday, down more than 14%, one day ahead of the company's trading debut on the New York Stock Exchange.

The Canadian producer, which grows cannabis for both the adult-use and medicinal market, has seen its market capitalization explode by more than 150% since August — to nearly $10 billion — as both corporate giants and investors have gotten in on the "green rush" into marijuana.

On August 15, the beverage maker Constellation Brands announced it was investing $4 billion in an Aurora rival, Canopy Growth, sparking a wave of interest in the space.

A month later, Bloomberg reported that Aurora had held talks with Coca-Cola about developing beverages infused with CBD, a nonpsychoactive compound found in cannabis. No deal was announced.

"Aurora has expressed specific interest in the infused beverage space, and we intend to enter that market," an Aurora representative told Business Insider at the time.

"There is so much happening in this area right now and we think it has incredible potential. As a rule, we do not discuss business-development initiatives until they are finalized; however, we have a responsibility to our shareholders to give proper consideration to all relevant opportunities that are presented."

And last week, Canada became just the second country to legalize marijuana, but that didn't have the impact investors were hoping for. Cannabis stocks got slammed as traders sold the news.

But investors remain optimistic that Canada's legalization is the dawn of a new era for investors.

"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, said.

Aurora Cannabis is set to trade under the ticker ACB beginning Tuesday.

Jeremy Berke contributed to this report.

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