The deal is another win for the cannabis industry, but though a number of states have already given marijuana use the thumbs up for recreational or medical use, depending on the state, it is still prohibited by federal law. The Food and Drug Administration, in particular, prohibits the use of cannabis in consumer items like food and drinks.
Another obstacle is listing on exchanges. Some exchanges prohibit the listing of companies that engage in business activities they deem questionable.
“Until now, the Nasdaq has not been willing to list companies that have U.S. ‘plant touching’ cannabis operations,” said cannabis lawyer David Feldman, a partner at Duane Morris. “What’s interesting is that they didn’t tie this to Nasdaq, they tied it to legalization.”
“It is interesting that they are limiting it to legalization, rather than completing the acquisition when TSX and Nasdaq are prepared to allow the listing,” Feldman added.
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