Greenlane Holdings, Inc., a U.S. vape distributor, went public on the Nasdaq in April. Greenlane is the first U.S. cannabis company to obtain a Nasdaq listing and may well bode the beginning of the end of the prior trend of U.S. companies going public in Canada, where cannabis is federally legal. The New York Stock Exchange also recently reversed its prior ban on listing U.S. pot companies by allowing the name and symbol change for Kathy Ireland’s company, formerly known as Level Brands, Inc. The company changed its name to cbdMD with the new symbol YCBD, reflecting its change to primarily a CBD company. The NYSE also reversed its own initial delisting decision on India Globalization, now a CBD company as well, back in February. (As we know, cannabidiol, or CBD, derived from the cannabis plant, is believed to contain much of the plant’s medical benefit without the psychoactive “getting high” features of THC).
A number of U.S. cannabis companies decided to go public in Canada in the last few years, mainly under the belief that fundraising would be easier there and the company’s valuation in trading would fare better than if they traded only in the U.S. over the counter markets. Canada’s senior exchange, the Toronto Stock Exchange, had declined to list U.S. companies, so they trade on its lower exchange known as the Canadian Securities Exchange or CSE.