Weed is continuing its steady ascent into the mainstream, as it has been announced that a major Canadian licensed marijuana producer has recently been granted approval by the Securities and Exchange Commission to begin trading on the NASDAQ. This is the first time a company that deals marijuana has been listed on the U.S. stock exchange.
Cronos Group, which has already become a staple on the Toronto Stock Exchange, is expected to begin trading its shares on the NASDAQ under the symbol 'CRON' as early as today.
While marijuana is still mostly illegal in throughout the United States, Cronos was offered its spot on the NASDAQ because the company is a licensed Canadian business producing marijuana for the country's impending legalized recreational market. This effectively means that Cronos is not technically barred from trading on the U.S. stock exchange.
While there may be a overarching stigma surrounding an American investor owning weed stocks, they are legally permitted to invest in Canadian cannabis companies who trade on a national exchange.
"I grew up in the U.S. and most of our investor base is in the U.S., but I still get calls from American investors who are unsure as to whether they can buy Canadian weed stocks," admits Mike Gorenstein, the CEO of Cronos Group. He further admits how "it’s complicated and intense because of their securities rules. We started building a relationship with the NASDAQ sometime last year, and we had to go through many audits and reviews by different independent committees to make sure that our governance was up to snuff. It’s more than just getting on the exchange. We wanted to be the first company that went about this the right way."
