Cannabis companies took three steps forward and one step back Monday in the fight for global legitimacy in financial markets. Here are the industry’s three biggest stories.
A Delayed Filing
PotNetwork Holdings Inc. (OTC: POTN) withdrew its application with the Securities and Exchange Commission to become a fully reporting company.
Management reversed its decision after learning that its auditing firm lost PCAOB certification; the accounting firm had already been under known scrutiny at the time of its hiring in 2016. Additionally, “420 Investor” Alan Brochstein had identified errors in PotNetwork’s Form 10’s Cash Flow Statement and Income Statement.
The company said it will file a revised registration statement as soon as possible.
Acreage Holdings, whose board includes former House Speaker John Boehner and former Massachusetts Gov. Bill Weld, said it plans to list in on the Canadian Securities Exchange this fall via a reverse takeover deal.
“The liquidity on the CSE is incredibly attractive to Acreage, and we know that retail investors in the U.S. have become comfortable with that exchange,” Acreage CEO Kevin Murphy said in a statement.
The firm further announced the closing of a $119 million round of funding.
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Also pursuing exposure to the public markets is CV Sciences, Inc. (OTC: CVSI), which applied for up-listing from the OTC to the Nasdaq. CV’s board approved a reverse stock split between 1-for-2 and 1-for-10 for all outstanding shares in order to meet Nasdaq’s minimum bid price requirement.
“We believe up-listing from the OTC Market to the Nasdaq Capital Market will increase corporate visibility, improve liquidity, and broaden awareness in the financial markets,” CEO Joseph Dowling said in a statement.
LiveWell announced its purchase of a 12-percent stake in GCH, which secures Canadian distribution rights to Willie Nelson’s cannabis brand, Willie’s Reserve.
The firm is also taking over management of 51st Parallel and pursuing a reverse takeover of Target Capital, the latter of which will enable listing on the Canadian exchanges.
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