A number of European marijuana start-ups are thinking about listing in New York due to the anticipated reclassification of marijuana by federal authorities as a less harmful narcotic. Although the companies haven’t finalized their plans, they are drawn to the U.S. market’s increasingly favorable stance on cannabis and CBD products.
Statista estimates that this year’s CBD market might be valued at approximately $6.90 billion.
Under the new U.S. regulations, cannabis may be moved from the highly restrictive Schedule 1 of the Controlled Substances Act (CSA), which also includes LSD, heroin, and fentanyl, to the less restrictive Schedule 3, placing it in the same category as ketamine and anabolic steroids.
This move may encourage many cannabis companies in Europe and the United Kingdom to list on U.S. exchanges rather than European ones, where laws governing CBD products are still very strict. For example, whereas some European nations permit CBD e-liquids, they only allow CBD edibles if approved by the European Food Safety Authority.
Most European nations do not completely ban CBD products but enforce a limit on the quantity of THC, the main psychoactive component of marijuana. Certain nations, including the UK and Sweden, forbid the sale of any CBD products that include THC, while Andorra, Belarus and Albania have complete CBD bans.
Companies including London-based Grow Group and Wellford Medical have stated their intention to go public on NASDAQ early in 2025. Lisbon-based Somai Pharmaceuticals has hinted that it may seek a NASDAQ listing in addition to secondary listings on the Toronto Stock Exchange or the London Stock Exchange.
Despite these developments, federal rules in the United States still prohibit large U.S. marijuana companies, such as Curaleaf, Cresco Labs, Verano Holdings Corp. and Trulieve Cannabis Corp., from listing on U.S. exchanges, including the NASDAQ and the New York Stock Exchange (NYSE). As a result, many of these businesses choose to trade on Canadian platforms, including the Toronto Stock Exchange and the Canadian Securities Exchange. On the other hand, the United States does permit Canadian marijuana companies, such as SNDL and Canopy Growth, to list on its platforms.
A greater number of European and UK companies may choose to relocate from their home markets to the U.S. if cannabis is reclassified, especially given the difficulties major European stock exchanges like the LSE are having keeping up with company growth and IPO activity.
There has been growing pressure on the U.S. federal government to reclassify cannabis due to its medicinal and therapeutic benefits. Products containing CBD oil, including tinctures, lotions and candies, are given to treat pain and other side effects of chemotherapy, in addition to treating anxiety, discomfort and memory issues. Additionally, an increasing number of U.S. states have legalized recreational cannabis.
However, critics counter that marijuana might be toxic and could serve as a gateway drug for more potent substances.
As marijuana companies in Europe prepare to list in the United States, they will find other established companies such as Software Effective Solutions Corp. (d/b/a MedCana) (OTC: SFWJ) already accessing capital from North American investors, and competition for these resources could tighten even more.
NOTE TO INVESTORS: The latest news and updates relating to Software Effective Solutions Corp. (d/b/a MedCana) (OTC: SFWJ) are available in the company’s newsroom at https://cnw.fm/SFWJ
About CNW420
CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of an article each business day at 4:20 p.m. Eastern – a tribute to the time synonymous with cannabis culture. The concise, informative content serves as a gateway for investors interested in the legalized cannabis sector and provides updates on how regulatory developments may impact financial markets. If marijuana and the burgeoning industry surrounding it are on your radar, CNW420 is for you! Check back daily to stay up-to-date on the latest milestones in the fast -changing world of cannabis.
To receive SMS alerts from CNW, text CANNABIS to 888-902-4192 (U.S. Mobile Phones Only)
For more information, please visit https://www.CannabisNewsWire.com
Please see full terms of use and disclaimers on the CannabisNewsWire website applicable to all content provided by CNW, wherever published or re-published: https://www.CannabisNewsWire.com/Disclaimer
CannabisNewsWire
Denver, CO
www.CannabisNewsWire.com
303.498.7722 Office
Editor@CannabisNewsWire.com
CannabisNewsWire is powered by IBN