Marijuana

Nasdaq Rejects Listing for Marijuana Social Networking Company, Cites Federal Laws

Passed.

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via MassRoots

The stock exchange Nasdaq has rejected an application for listing filed by MassRoots, a company that runs a marijuana social network, according to the company, which released a statement about the rejection.

Nasdaq rejected the application in part because the company could be seen as aiding abetting violations of federal law, namely marijuana prohibition, according to MassRoots. Nasdaq doesn't comment on listing applications and says in its rules it "upholds federal law," according to CNN Money.

For its part, MassRoots says it will appeal Nasdaq's decision to the exchange's listing appeals board.

"With this decision, we believe that the Nasdaq has set a dangerous precedent that could prevent nearly every company in the regulated cannabis industry from listing on a national exchange," MassRoots CEO Isaac Dietrich insisted in the company's 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."

Institutional investors began entering the marijuana market at the beginning of last year. MassRoots currently lists on the OTCQB market. The company says it has 900,000 people on its social network for marijuana users. Only individuals in states where at least medical marijuana has been legalized can register.

In its application, MassRoots acknowledged there was "no guarantee" the Obama administration would maintain a policy of low-priority enforcement of marijuana laws in states where the substance has been legalized to some degree, and that "a new administration could introduce a less favorable policy or decide to enforce federal laws strongly."

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  1. I don’t blame them

  2. In its application, MassRoots acknowledged there was “no guarantee” the Obama administration would maintain a policy of low-priority enforcement of marijuana laws in states where the substance has been legalized to some degree, and that “a new administration could introduce a less favorable policy or decide to enforce federal laws strongly.”

    Mad Props to MassRoots dedication to reality. It should always be noted in this current climate that the cylinder of democracy may not land on an empty chamber the next time we spin it.

  3. This is guerrilla marketing.

    Free advertising.

    You can’t control what the media says about you, but you can make the media talk about you.

    That’s why Kim Kardashian is famous. Donald Trump won the nomination this way.

    I never would have heard of these guys if they hadn’t tried to list on nasdaq. Their competitors are kicking themselves for not thinking of it first.

  4. What about GWPH? It’s listed on Nasdaq.

    https://en.wikipedia.org/wiki/GW_Pharmaceuticals

    GW Pharmaceuticals is a British biopharmaceutical company known for its multiple sclerosis treatment product Sativex, nabiximols (brand name, Sativex). Sativex is the first natural cannabis plant derivative to gain market approval in any country.[4] Another cannabis-based product, Epidiolex, for treatment of epilepsy, underwent phase 3 clinical trials in 2015.

    1. Oh nvm. They seem to be doing everything in accordance to federal law.

    2. The risk with a social network is the potential for person to person sales.

      A pharmaceutical company selling through pharmacies–where it’s legal to do that–doesn’t present that risk.

      I could see the government going after investors for profiting from distribution just for collecting dividends. Nasdaq needs to protect their traders and their brand. I don’t begrudge them that.

  5. Good thing MJ is “legal”, huh?

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