Medipharm Labs (TSX: LABS) announced this morning that it has submitted an application for listing on the Nasdaq stock exchange. If approved, the equity will be dual listed to allow for investors to more easily hold a position in the firms equity.
Once coveted as a golden trophy by cannabis sector investors, cross listing to US markets has had little positive effect on cannabis focused issuers that have made the cut. While the listing is viewed as enabling more investors to take a stake in the firm, its also opens the firm to heavier selling pressure through more active options trading and short selling. Once viewed as a sentiment boosting move, cross listing, at least for cannabis companies, is a rather uninspiring event in most instances.
Yet, numerous issuers are still chasing the prospect of being listed on a big board exchange to provide additional liquidity to their equity. Notable attempts by Canadian issuers that have yet to see results include The Green Organic Dutchman (TSX: TGOD), who applied in August for a dual listing, and Aleafia Health (TSX: ALEF) who applied in October 2018 for listing. No progress has been made in either instance in regards to uplisting. Smaller firms, such as FSD Pharma (CSE: HUGE) and Namaste Technologies (TSXV: N) have previously mentioned such aspirations as well, however these are general viewed as “long shot attempts” by investors.
We are thrilled to be entering the next phase of growth at MediPharm Labs including cross-listing on the NASDAQ, one of the world’s foremost exchanges for emerging markets and technology, such as the burgeoning cannabis sector. We are thrilled to be entering the next phase of growth at MediPharm Labs including cross-listing on the NASDAQ, one of the world’s foremost exchanges for emerging markets and technology, such as the burgeoning cannabis sector.
Pat McCutcheon, Chief Executive Officer, MediPharm Labs
No timeline has been provided by Medipharm Labs for a potential approval of the listing of its shares. The news of the application for cross listing follows yesterday’s news of the firm replacing the CFO with a former executive from that of George Weston.
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Medipharm Labs closed yesterdays session at $4.53 on the TSX Venture.
Information for this briefing was found via Sedar and Medipharm Labs.. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
