The federal ban on marijuana prevents them from trading on major exchanges like the Nasdaq or the New York Stock Exchange .
8.” This relates to companies with a “direct nexus to marijuana-related activities” that do not trade on one of the main North American exchanges, such as the Nasdaq, NYSE, or the Toronto Stock Exchange , which because of the illegality of cannabis in the U.S., have to trade over the counter and on the Canadian Securities Exchange, which has laxer rules than the TSX.
The bank will allow clients to liquidate their positions in such holdings, but they won’t be allowed to make new purchases or take on new short positions in them.
And although it isn’t impossible for a company to open a bank account or even obtain a loan, it’s certainly not easy.
Nonetheless, it’s an interesting development considering that there appears to be hope for marijuana reform, with Senate Majority Leader Chuck Schumer pushing for marijuana legalization and President Joe Biden appearing to be in favor of decriminalizing the substance.
There’s no doubt that this development could be concerning, as it has the potential to negatively impact liquidity in marijuana stocks.
With 36 states permitting medical marijuana and 18 of them having enacted legislation for adult-use pot, the writing is on the wall that legalization, or at least some kind of reform, will likely be coming soon.
With an annual revenue run rate of more than $1 billion, Curaleaf is already a top company in the industry.