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SEC Allows Marijuana Dealer to Go Public

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With so many public companies hitting the marijuana market in the past few years, the next major phase in the development of canna-business has taken place.
The SEC has allowed the first public company whose main source of income/business is the cultivation and sale of marijuana. Up until now, many public companies stuck to marketing and consulting said “grows”, product development, and other forms of business surrounding marijuana.
With over 2.7 billion made on the sale of marijuana in the US this year, its no secret that the most valuable part of the business is  growth and cultivation of the plant. Allowing public companies to report this as their main source of profit will only strengthen the overall marijuana business
Market watch via the Wall Street Journal Reports:

The U.S. Securities and Exchange Commission has allowed a share registration to proceed for a company whose business model includes cultivation and sale of marijuana, which are both illegal under federal law, though legal under some state laws.

This approval appears to be the first green light for a share registration by a company in this line of business and could set a precedent for marijuana dealers to access the equity markets, but the agency’s ambivalence about such a business model is clear from the way it handled the registration.

Irvine, Calif.-based Terra Tech Corp. TRTC, +12.94{f1d755e3d686d84b3fba3fb9da3bc25d6eb08724c18385fd50146d58c836a6dd}   recently received approval for its disclosures and the registration of its shares.

Another company planning to cultivate and sell marijuana also has a pending application with the SEC, a source familiar with the company said.

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Richard Lowe

Richard Lowe is a 14-year veteran of the financial sector with licenses as a commodity broker (Series 3) and investment advisor representative (IAR Series 65). Along with a focus on raising capital for the firms he was employed with, he also wrote and edited much of the content published by them. He holds a BA in Journalism from the University of Massachusetts. He has been a longtime advocate for marijuana legalization due to the social injustices associated with marijuana prohibition and the strong potential for the medicinal benefits of cannabis.

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