Nasdaq Welcomes First Cannabis Company
Everyday it seems there’s a new milestone for cannabis, and Tuesday was a big one. Canadian-based marijuana producer Cronos Group began trading on the Nasdaq, marking the first time a marijuana company has traded on the U.S. stock exchange.
“It’s very significant for the company and the whole industry,” said Cronos founder Mike Gorenstein. “It’s a huge moment -- just shows the stigma is continuing to erode on cannabis.”
How did the how company get approved in the first place? Cronos only works with countries where marijuana is legal, meaning they don’t work with countries with a federal ban. There was much preening involved to ensure it met all the SEC requirements beforehand.
The new asset hit some expected volatility, with shares dropping 2% on their first day.