Extraction firm MediPharm Labs
The company needs to gain approval from the NASDAQ and from the United States Securities and Exchange Commission in order to secure the listing. It plans to maintain its listing on the TSX and concurrently boost its appeal to investors around the globe with a presence on the NASDAQ.
“Listing alongside our peers on the NASDAQ will enhance our visibility and access to a larger base of institutional and retail shareholders in the U.S. and globally,” said chief executive Pat McCutcheon.
Most pot stocks have listed in Canada and few have gone for a listing on the NASDAQ, with marijuana still illegal at a federal level in the U.S. It was the original electronic exchange and it has long been synonymous with technology and biotechnology, and the majority of NASDAQ-listed cannabis companies operate in the biotech sector of the industry.
They include Arena Pharmaceuticals, Cara Therapuetics, and Corbus Pharmaceuticals. Cronos Group and Village Farms International are listed, but they primarily have interests in tobacco and farming, respectively.
British company GW Pharmaceuticals is listed on the NASDAQ, but it produces the only medical cannabis product with FDA approval. Tilray and OrganiGram are the main cannabis companies currently listed.
The Green Organic Dutchman has applied to join that group, while The Flowr Corp. secured approval earlier this year, but it is now assessing the timing of the uplisting after cancelling a stock sale due to prevailing market conditions.
MediPharm Labs was founded in 2015 and it has emerged as one of the largest extraction specialists in Canada. Its share price stood at $1.80 at the start of the year and peaked at $7.39 before a correction sent it back below the $5 mark.
LABS closed at $4.53 yesterday, but opened at $4.65 today and quickly increased to $4.80 after news of the NASDAQ application was announced.
The firm generated pre-tax net income of $4.1 million in Q2 2019 after enjoying a sharp sequential increase in revenue. It is due to announced its Q3 financials later this month.
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