Nasdaq uplisting for this TSX.V listed company is a major milestone
By Jason Smith
• Nasdaq uplistings increase opportunities to attract institutional and retail investors
• The Alkaline Water Co.’s Nasdaq listing mirrors its growth as a company
• WTER’s national distribution provides a potential launching pad for new products
A stock listing on one of the major U.S. exchanges can help public companies raise their investor profile among their target audience. So, when one of those exchanges grants a company permission to publicly list on its platform, this is a sign that the company has hit a key milestone.
With many institutional investors unwilling or even restricted by the opportunities of investing in stocks listed on junior exchanges, an uplisting on a senior stock exchange like the NYSE or Nasdaq provides public companies a broader investor base. This in turn aids companies in attracting new shareholders and investments that they would not otherwise have.
Companies that can meet the senior U.S. exchange’s listing requirements have a chance to demonstrate that they meet the markets financial stability metrics and value to a much larger audience. Moreover, the larger volumes of stock traded on those exchanges also open up the possibility of better liquidity for a company’s stock.
“With the increased visibility and liquidity that trading on the Nasdaq will provide, we will continue to expand our product lines, increase the visibility of our brand and grow our presence with existing and additional retailers as we drive value for our shareholders.” — Aaron Keay, Chairman, The Alkaline Water Co Inc.
Nasdaq Listing Reflects WTER’s Recent Growth
Given the advantages of a U.S. listing, The Alkaline Water Co Inc.’s (NASDAQ: WTER) (TSX.V: WTER) step towards this stock exchange was a substantial corporate move to help the company expand its global reach. Using the stock symbol WTER, the company began trading on the Nasdaq on Monday, December 10th.
As a primer for those who do not know of the company, The Alkaline Water Co produces the Alkaline88® alkaline-infused water brand, which is available in a variety of sizes in over 47,000 retailers in all 50 U.S. states. Its distribution partners include Walmart, Kroger, Safeway-Albertsons and CVS.
The move towards the Nasdaq increases investor visibility around WTER’s growth strategy and product expansion while being one of the fastest-growing bottled water companies in the United States.
Generally speaking, the larger and more stable the company, the more likely it is to earn a listing on a stronger exchange. WTER’s Nasdaq listing reflects its growing revenues and the strength of its product line. The move could also help the company grow its shareholder base and, potentially, garner larger market capitalization.
Aaron Keay, Chairman of The Alkaline Water Company Inc., notes that the “listing is an important step forward for [the] company and the culmination of an intense period of hard-work inspired product and business model innovation and disciplined execution. With the increased visibility and liquidity that trading on the Nasdaq will provide, we will continue to expand our product lines, increase the visibility of our brand and grow our presence with existing and additional retailers as we drive value for our shareholders.”
A Full Pipeline of New Products
The new listing comes at a critical time for WTER, as the company is rapidly expanding its offering of alkaline-based waters.
The company recently established its A88 Infused Beverage Division, which plans to launch a hemp-derived, CBD-infused water, a sparkling CBD infused water and a vitamin-infused CBD water.
To facilitate the development of this line, A88 Infused has signed a Technology-Licensing Agreement with Infusion Biosciences to provide it with ready-to-drink hemp-extract formulations.
The status of the CBD product line is dependent on the legalization of hemp and CBD in the United States. CBD is likely to become federally legal in the U.S. as part of the 2018 Farm Bill, which is promising based on its current written form. However, WTER will only pursue the production or sale of CBD-infused products when doing so is legally permitted and it has obtained all necessary approvals.
The company is also working on a vitamin-based, energy version of Alkaline88® and a line of naturally flavoured Alkaline88® waters. Flavours for this latter offering will include watermelon, blackberry, lemon, blood orange and peach mango.
Building on a national distribution network, WTER is uniquely positioned to capitalize on the nascent CBD-infused water category and grab more shelf space from its retail partners for its flavoured and enhanced waters.
Coming off a second fiscal quarter where it posted yet another record sales total, the company is committed to continued growth and delivering more product and partnership announcements to the market.
With its new Nasdaq listing, WTER has, according to President and CEO Richard Wright, achieved “a significant milestone as we execute on our disciplined growth strategy and continue to accelerate our momentum.”