Shares of Canopy Growth Corp (TO:WEED) surged more than 5 percent in early trading Friday as it was announced the Canadian cannabis company would be added to the S&P/TSX 60 Index.
The move, to be effective on the opening of trading on April 18, comes as Goldcorp Inc (TO:G) will be dropped from the listing of the 60 largest companies on the Toronto Stock Exchange.
It was announced yesterday that Canadian Goldcorp is being acquired by U.S.-based Newmont Mining (NYSE:NEM) in a $10-billion takeover, forming the biggest gold producer in the world.
Canopy Growth is the first marijuana company to be included in the S&P/TSX 60 Index. The company, which specializes in the growing of medical marijuana, went public five years ago, when it was first listed on the Toronto Stock Exchange’s Venture index. Its stock (NYSE:CGC) is also traded on the New York Stock Exchange.
"Being added to the S&P/TSX 60 Index marks another major accomplishment for our company, team, and shareholders," said Canopy chairman and CEO Bruce Linton in a statement issued by the company earlier today. "I cannot think of a better way to celebrate our fifth-year anniversary as a publicly traded company, than being added to the TSX's large-cap index."
Canopy was the first publicly traded cannabis company in North America. Last year, the company secured a $5-billion investment from Constellations Brands Inc., an international brewer and the Number 3 beer company in the U.S., which includes the Corona brand.
Canopy shares closed yesterday at $53.45 and were above $56 in early trading Friday. In the past year, shares have gained 93.24 percent. The Ontario-based company has a market cap of $18.33 billion.