There are many reasons to move to the large exchanges, such as NYSE or Nasdaq, from an over-the-counter (OTC) exchange.
While OTC listing is cheaper with less stringent standards than the large exchanges, there’s much to gain from uplisting.
Those stricter reporting standards give retail investors a greater comfort level to invest. Beyond comfort, those standards also allow institutional investors to buy the stocks within their mandates.
Meanwhile, pot stocks become much more liquid on large exchanges than they are over-the-counter.
Nonetheless, not every cannabis company can list their shares on NYSE or NASDAQ. Cannabis companies conducting business in the U.S. cannot list on a major exchange. Indeed, marijuana remains a Schedule I drug in the U.S. at the federal level. As such, NYSE and Nasdaq only grant listing to companies with cannabis operations outside the U.S.Not all pot companies can list
In 2018, five cannabis companies uplisted. HEXO Corp. looks to follow suit before the end of the year. But there a couple more that fit the bill.CannTrust Holdings
Market cap.: $750 million.
CannTrust Holdings (TSX: TRST.TO) May have it’s ducks in a row for listing on a major U.S. exchange.
The company boasts a 60,000-square-foot Vaughan Ontario facility. Meanwhile its focus is on bringing down costs at the company’s upcoming 1-million-square-foot Niagara Greenhouse hydroponic grow farm.
Bus far, the company has generated most of its revenue from cannabis oil sales. Cannabis oils sell at a higher price with more attractive margins.
Listing up could be a good move for CannTrust. Keeping in mind, the upward move’s been a boon to some and anticlimactic for other producers in the space.OrganiGram Holdings
Market cap.: $600 million.
OrganiGram Holdings (TSXV: OGI.V) could be a candidate to uplist to either Nasdaq, or the NYSE.
Although the company have some scaling up to do, OrganiGram could soon be among the top 10 cannabis producers.