Two cannabis-related companies in Southern California provided updates this week on plans to trade publicly.
Garden Grove-based KushCo Holdings Inc. said July 8 it had filed an application to list the company’s common shares on the Nasdaq Global Select Market, which consists of more than 1,200 stocks. The timing of the listing will be subject to exchange approval and the company's fulfillment of regulatory requirements.
In the interim, KushCo, which sells packaging and containers for cannabis, will continue to trade on the OTC Markets under the current symbol KSHB. (Trading on the over-the-counter market is done directly between two parties without the supervision of an exchange.)
Cannabis remains illegal under federal law. But Nasdaq has permitted companies like KushCo--which offer products and services adjacent to the cannabis trade, and don't actually buy and sell the marijuana plant--to begin trading on its exchange.
Nick Kovacevich, KushCo chief executive and chairman, said the move to Nasdaq will “raise the company’s profile” by diversifying the firm’s shareholder base and enhancing share liquidity.
Century City-based From the Earth Inc., which generated $18 million in revenues in 2018 from dispensaries in Santa Ana and Port Hueneme, announced plans this week to join the Tel Aviv Stock Exchange. From the Earth plans to pursue a reverse takeover of KMN Capital, a publicly held Israeli company, marking the company’s emergence on the Tel Aviv market.
Chief Executive Dan Zaharoni said his company would become the first U.S.-based cannabis firm to trade on the Tel Aviv exchange. In a filing with the exchange, From the Earth disclosed plans to open dispensaries in Long Beach and elsewhere in Southern California, as well as a “coffee lounge” in Culver City and cultivation locations in Lompoc and Montreal.
Finance reporter Pat Maio can be reached at firstname.lastname@example.org or (323) 556-8329.
For reprint and licensing requests for this article, CLICK HERE.