MassRoots Inc (OTCMKTS:MSRT) was recently denied its up-listing request, by the NASDAQ. The company had filed its application in August, 2015 and is considered to be one of the fastest growing technology platforms for the cannabis industry. In its reply, NASDAQ stated that the company may be deemed as an aide in the distribution of an illegal substance, under Federal Law. MSRT has stated that it would appeal against the decision, to the listings and qualifications board of the stock market.
Isaac Dietrich, the CEO of MassRoots, stated that the reply meant that none of the company’s from the cannabis sector could be listed on a national exchange. He was of the opinion that such a move could put a severe dent on the cannabis industry as a whole and prevent them from raising substantial capital. The CEO also asked other companies, businessmen and investors of the cannabis industry, to join MSRT in appealing against the decision.
Mr. Dietrich even compared the cannabis industry to that of alcohol and tobacco, stating that the two products cause far more deaths and bodily harm than cannabis, yet such companies are allowed to be listed. He also pointed out that few biotechnology companies were also listed on the NASDAQ, which involved research on the cannabis plant as part of their business model. As such, MassRoots has also revealed that it would be postponing its planned reverse stock split, while it deals with the situation.
It should be noted here that although several states have started to legalize the distribution of regulated medical marijuana, it is still considered illegal on a Federal level. As such, it is unlikely that a marijuana company would get listed on the NASDAQ or NYSE anytime soon. The case of biotech companies is exceptional, since they are working with the FDA, to gain approval, before proceeding any further with their tests.
MassRoots Inc (OTCMKTS:MSRT) completed the May 24 trading session, with a loss of 18.33% to its share value, to close at $0.735 per share, after having a trade volume of 506,146.