TRSSF - This Will Be a Big Test for the Cannabis Industry
2023-03-29 05:30:00 ET
One of the biggest hurdles for multi-state marijuana companies today is that they can't trade on a major stock exchange due to the U.S. ban on the drug. But a report last week from the industry website MJBizDaily suggests a change may be in the works. If it happens, it might just provide a foot in the door that has been so far closed to U.S. marijuana companies and provide them with access to additional funding from a larger pool of investors.
The report says North American cannabis operator TerrAscend (OTC: TRSSF) recently applied to list on the Toronto Stock Exchange (TSX). If it's successful, expect some multi-state operators (MSOs) to follow in its path. Here's why.
If you're buying shares of a cannabis company that's listed on the Nasdaq Composite , odds are it's a Canadian-based marijuana business (since pot is legal there). MSOs that operate in the U.S. aren't able to trade on a major exchange like the Nasdaq or even the TSX, because they can run afoul of U.S. laws. These stocks for these companies are more likely to be found either on an over-the-counter exchange or the Canadian Securities Exchange, a less popular option than the TSX.
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This Will Be a Big Test for the Cannabis Industry