It is my understanding that the thing that is holding back marijuana companies whose business operations are based in the USA from listing on the major exchanges is that those companies who deal directly with the processing of the marijuana plant as their main business model/operations are unable to uplist because marijuana is still illegal in the USA under Federal Law.
TL*RY as an example carries on its business activities in Canada but is listed on the Nasdaq. Under Federal Canadian law selling cannabis products in Canada is legal.
USA State law doesn’t apply to companies wanting to uplist who carry out their business activities in the USA as the rules governing what the Nasdaq and NYSE can allow to list is decided by Federal law, not State law as it refers to the laws in the country in which the company is based which is seeking the listing.
It is where the applicant carries out it’s business activities and the law as it relates to cannabis in the home jurisdiction of the applicant that determines whether they can uplist.
If a company which carries out its business activities in the USA wants to uplist, its business model mustn’t fall foul of USA Federal law.
You can see the fine distinction there between the two.
Those companies that have direct contact with the cannabis plant and actually process and sell products made from the cannabis plant, then sell it on as their business model, can’t list on the main Nasdaq or the NYSE yet because Federal law has still not made cannabis legal in the USA. It was only mentioned in the Farm Bill last year.
The Nasdaq and the NYSE are mindful of not falling foul of Federal law as it stands at the moment.
As the GRN holding company has no direct contact with the cannabis plant in its day to day activities I understand there is a fine distinction which can be drawn in their business model which will allow them to either uplist to the Nasdaq or the New York Stock Exchange.
That is my understanding as I see it as to why GRN will still be able to uplist.
My post are my opinion only. You should do your own due diligence before investing in any stock or take professional advice. I am not an investment advisor. Kind Regards.
