Marijuana multistate operator Ascend Wellness Holdings is the latest publicly traded U.S. cannabis firm to lay the groundwork to uplist to a major American stock exchange.
The New York-based company said in a press release Monday that it will vote next month on a reverse stock split, a necessary step to meet the New York Stock Exchange’s minimum share price requirements.
“We believe an uplisting could expand what’s possible for our business by increasing our access to capital, broadening our investor base, and unlocking opportunities that have long been out of reach for cannabis operators,” company CEO Sam Brill said in a news release.
“With the regulatory landscape shifting in real time, we are taking these steps now to move decisively as those doors open.”
What’s the next company to uplist to a major exchange?
There’s no guarantee Ascend will secure a listing on a U.S. stock exchange or that the reverse split will result in a sustained increase in its trading price, according to the news release.
A reverse stock split raises a company’s per-share trading price, helping it to satisfy exchanges’ price requirements imposed on new listings.
Other cannabis MSOs to pursue stock splits in hopes of uplisting include
However, neither company has yet uplisted.
So far, the only U.S.-based plant-touching operators to list on the NYSE are:
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Notably, both companies also divested themselves of direct holdings in adult-use cannabis and reorganized to be medical-cannabis only.
Both companies also claim to have pursued registration with the U.S. Drug Enforcement Administration, an option available to state-licensed MMJ operators following MMJ’s reclassification as a Schedule 3 drug.
Will Ascend Wellness be able to uplist?
Ascend said in late June it had applied for DEA registration. However, the company continues to operate in adult-use cannabis markets. These include
- Illinois
- Maryland
- Massachusetts
- Michigan
- New Jersey
- Ohio
Ascend also operators in medical-cannabis only Pennsylvania, according to company statements.
In contrast to Verano’s 1-for-5 and Curaleaf’s 1-for-3 stock splits, Ascend is proposing its shareholders approve a reverse split “at a ratio of between 1-for-10 and 1-for-50,” the company said.
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