DEA - European Cannabis Companies Race To The Nasdaq: $1B In Tax Break On The Horizon | Benzinga
Some European cannabis companies are already planning initial public offerings (IPOs) on the Nasdaq, encouraged by the prospect of a less restrictive regulatory environment. The potential rescheduling of cannabis to Schedule III of the Controlled Substances Act and Germany’s recent decriminalization have ignited optimism within the sector.
Grow Group, a UK-based medical cannabis distributor, is spearheading this movement with a planned Nasdaq IPO in early 2025. CEO Benjamin Langley told the Financial Times about the investors' interest in the industry. "What we’re seeing now, is that loosening up such that people are deploying funds and there is money again in this space,” he said.
Somai Pharmaceuticals, a Portuguese player and UK's Wellford Medical are also considering Nasdaq listings. "If the US [reclassifies], coupled with the legislative change in Germany, it could be the perfect time for us and . . . investors to catch that sentiment wave," Wellford’s Joshua Roberts told Financial Times.
The Drug Enforcement Administration's proposed rule change to reclassify cannabis could significantly impact the industry by reducing exorbitant taxes, stimulatinig clinical research and potentially unlocking the world's largest cannabis market.
Why This Matters
Listing on Nasdaq offers European cannabis companies significant advantages, especially amid current regulatory shifts. First, it provides access to a broader pool of global investors, while ...