Following last week’s rejection of MassRoots (OTC:MSRT) by NASDAQ, the National Cannabis Industry Association (NCIA), the industry’s leading trade organization, and The ArcView Group, a highly respected angel investor network focused on the cannabis industry, have drafted a letter to Robert Greifeld, the CEO of NASDAQ. NASDAQ had rejected the company’s bid to uplist because it could be perceived as aiding and abetting the distribution of an illegal substance, according to the company.
The letter argues that the standard is vague and questions if the exchange would restrict a power company that supplies electricity to a grower, for example. It also points to Alphabet Inc.’s (NASDAQ:GOOG) Google and Facebook (NASDAQ:FB) as potentially aiding and abetting yet maintaining their listings. It echoed the “dangerous precedent” argument made by MassRoots previously. Access to capital is a real challenge for the cannabis industry, and the inability of companies that comply with state-laws to access the NASDAQ is yet another impediment.
You can add your signature to the letter here.
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