Nasdaq rejects listing application by cannabis social network
24/05/2016 21:37
By Laila Kearney
NEW YORK, May 24 (Reuters) - Stock exchange operator Nasdaq
has rejected a listing application by MassRoots Inc MSRT.PK on
the grounds that it may aid in the use and dealing of an illegal
substance, the cannabis social networking company said on
Tuesday.
The rejection, handed down on Monday, may insert roadblocks
ahead of other cannabis-related companies seeking to list on a
national stock exchange, MassRoots Chief Executive Isaac
Dietrich said in a statement.
"This will have ripple effects across the entire industry,
making it more difficult for cannabis entrepreneurs to raise
capital and slow the progression of cannabis legalization in the
United States," Dietrich said.
The Denver-based company, which connects cannabis users,
activists and business people through its mobile applications
and web portal, said it planned to appeal the decision.
Nasdaq declined to confirm whether it denied the application
or say if such a rejection would set a precedent for
cannabis-related companies.
The majority of public cannabis companies, including
Denver-based MassRoots, are traded over-the-counter, where
regulations are less restrictive and trading typically is done
between two individuals instead of a centralized exchange like
Nasdaq.
At least one company focusing on a cannabis-related
products, Insys Therapeutics INSY.O , is listed on the Nasdaq.
The pharmaceutical company is developing a cannabis-based drug.
Although cannabis remains classified as an illegal narcotic
under U.S. law, it has been legalized for medical use in 23
states since California became the first to do so in 1996.
Colorado, Washington, Oregon, Alaska and the District of
Columbia have gone a step further and legalized cannabis for
recreational use by adults.
(Reporting by Laila Kearney; Editing by Alan Crosby)
((L.Kearney@thomsonreuters.com;)(917)(809-0054;))
Keywords: US STOCK/LISTING