Canadian Cannabis Stocks Enter U.S. Trade on NASDAQ
A medical marijuana company based out of Toronto in Canada has just become the first cannabis stock on the U.S. stock exchange. Cronos Group, which can be found under ticker symbol CRON on NASDAQ, started trading in February. This is the first stock where the company is directly involved with the cannabis plant itself – rather than some ancillary need such as pipes, vaporizers, or other related products or services.
“Every success means future success for the industry. Every successful investment, every successful individual and every successful company brings us closer to legalization,” said Patrick Rea, the co-founder of CanopyBoulder, a firm that gives financial backing and advice to startups in the industry.
Cronos owns 100 percent of two different medical marijuana and cannabis oil brands – Peace Naturals and Original BC. Peace Naturals operates on 95-acres of land in Ontario, while Original BC operates on 31-acres of land in British Columbia. The company also holds a 21.5 percent stake in Whistler Medical Marijuana Company.
“It is a significant signal that a major U.S. exchange does not have an issue with cannabis, but rather the U.S. federal status,” said Hadley Ford, CEO of iAnthus Capital.
Marijuana stocks are gaining popularity with investors – so it’s good to find out that the U.S. stock exchange has no problem associating itself with marijuana companies. However, it is likely the federal-state conflict that will keep most, if not all, U.S. marijuana producers and businesses from trading on NASDAQ any time soon.
However, Cronos Group may have opened the door for other marijuana businesses in Canada, as well as at least consideration from U.S. cannabusinesses. For investors and businesses alike, this is great news – especially as more and more states here in the U.S. intend move toward legalization of either medicinal or recreational cannabis.