Cannabis Companies In US Queue Up In Canada To Get Listed On CSE
MedMen, which is a marijuana-based products company with its headquarter in Los Angeles, is not allowed to trade on the US stock market or Wall Street. The reason for this is that marijuana or cannabis is not legal in the US. Because of this, the company is registered in Canada and has recently started trading on the stock market of Canada – Canadian Securities Exchange.
Many similar companies have taken the same route and are going to Canada, which has no government restraint regarding trading related to marijuana and is legally allowed to have marijuana for medical purposes. Notably, Canada is on the way to make marijuana legal for entertainment purpose as well.
On the other hand, many cannabis firms from Canada are coming to US to trade on the Wall Street, as they don’t have to face the similar set of limitations that cannabis companies from US have to.
It is important to highlight here that, although cannabis is allowed for medicine purpose in 30 states and for entertainment purposes in 10, it is not allowed for the cannabis companies in the US to get registered on stock exchanges or be a recipient of fundamental fiscal services, as cannabis is banned by the central administration.
The Chief Executive Officer of MedMen, Adam Bierman, stated that there is an absence of simple and straightforward ways. While Chand Jagpal, CFO of a cannabis cultivating firm called Prime Harvest, which is based out of California, stated that his company is on the way to getting registered on Canadian Stock Exchange. The company is achieving this by carrying out merger in reverse manner of ME Resource Corp.
It has been expressed by some experts that the resolution of the matter of making marijuana legal on central level is very important for the US.