Weeding out the Obstacles for Investing in the Cannabis Sector; from Legalization to Transparency, How the Industry is Becoming a Safer Bet
POINT ROBERTS Wash. and DELTA, British Columbia, Jan. 10, 2019 (GLOBE NEWSWIRE) -- Investorideas.com, a leading investor news resource covering hemp and cannabis stocks releases a snapshot looking at the trend of cannabis companies uplisting in U.S. markets.
As regulations change, such as the rescheduling of CBD and Hemp in the US, it is likely we will see and more and more smaller cannabis companies work towards uplisting to the OTCQB, NYSE and NASDAQ markets, making them more transparent to investors as well as reaping the benefits of opening themselves up to a larger investor base and gaining access to more capital.
A big indicator of the growing acceptance and change in the sector; Wall Street is beginning to embrace it as Piper Jaffray initiated coverage on cannabis producers Tilray and Canopy Growth on Tuesday, joining a short — but growing — list of Wall Street brokerages watching the industry.
Back in February of 2018, Cronos Group Inc. (TSX: CRON.TO) (NASDAQ:CRON) began to blaze the path in cannabis stock credibility by becoming the first cannabis company to be listed on the Nasdaq Global Market, as well as uplisting from the TSX-Venture to the TSX.
In their release, Mike Gorenstein, CEO of Cronos Group said, "This up-listing to NASDAQ is a major corporate milestone and reflects the significant progress we have made in strengthening our corporate governance and expanding our global footprint. We believe this will increase long term shareholder value by improving awareness, liquidity, and appeal to institutional investors.”
Since then, cannabis companies both small and large have been looking to follow in their footsteps.
EnviroTechnologies International, Inc. (OTC:ETII) in a recent news release reported that it has commenced an audit to become a fully reporting company and transition to the OTCQB. The company’s subsidiary, CBD Health Co., a company that markets and sells high quality and proprietary hemp-based, natural CBD health products, has made inroads into the hemp-based pet supplement products market and further ambitions in the CBD market.
Gaylord Karren, ETI’s President commented, “We have been transparent with our financial information but we have not to date committed to a formal audit, which we determined is the next logical step in our progression as a public company. We expect to complete our audit by the end of first quarter 2019, which will then allow us to move to the QB and expand our options in the public marketplace.”
CannTrust Holdings Inc. (TSX: TRST.TO) (OTC:CNTTF), one of Canada's leading, most trusted licensed producers of cannabis and the 2018 Canadian Cannabis Awards "Top Licensed Producer of the Year", made a similar announcement recently that it has applied to list its common shares on the New York Stock Exchange.
In their release Peter Aceto, CEO of CannTrust said, "CannTrust has firmly established itself as one of the top licensed producers in Canada with a global platform rooted in trust, science and innovation. A listing on the NYSE is a natural step forward in our evolution as we look to broaden our investor base, increase the Company's exposure and expand our business on an international scale."
Many companies are also looking to broaden their investor reach in the Canadian markets as American Premium Water Corporation (OTC:HIPH), a company positioned in the growing CBD beverage market announced in December that it had engaged Canadian law firm Aird & Berlis with the intention to begin the process to list on a Canadian stock exchange. The Company’s goal is to be listed in Canada by the end of the first half of 2019, as well as complete its audit and become fully reporting on the US OTCQB.
In their news release, American Premium CEO and Interim Chairman Ryan Fishoff, commented “Today’s announcement is the first step to expand the Company’s reach into North American and the global investor market.“
Fishoff, as much as he is moving in the direction of the future, knows the importance of also remembering the roots of the industry, with icons like Snoop Dog. He tweeted yesterday making note that his company’s LALPINA CBD brand will be the liquid star of an event hosted by Snoop Dog for retired NFL player and Fox Business News contributor, Jack Brewer.
For investors following cannabis stocks, Investor Ideas has created a stock directory of publicly traded CSE, TSX, TSXV, OTC, NASDAQ, NYSE, ASX Marijuana/Hemp Stocks
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