Nasdaq has officially rejected cannabis social networking company MassRoots’ listing application on the grounds that it could “aid in the use and dealing of an illegal substance.” Outdated, idiotic federal policy strikes again.
This sets precedent for other cannabis companies looking to list on the national stock exchange, who will certainly face similar if not the exact same roadblocks in applying for national listing.
“This will have ripple effects across the entire industry, making it more difficult for cannabis entrepreneurs to raise capital and slow the progression of cannabis legalization in the United States,” MassRoots CEO Isaac Dietrich said in a statement.
Being rejected by national organizations is nothing new for legitimate cannabis businesses, which have had years of infamous issues with banking. As of now, most public cannabis companies trade over-the-counter, where trading is done person-to-person in a far less regulated environment than a public exchange such as Nasdaq.
Those seeking to develop and legitimize a legal cannabis industry will continue to face such financial roadblocks until the federal government gets its act together and makes it clear businesses working with cannabis companies operating in legalized states will not be prosecuted.