CANNAINVESTOR Magazine June 2016 | Page 19

MassRoots (MSRT) Denied Listing on the Nasdaq Exchange By Derwin Wallace CANNAINVESTOR Magazine CANNAINVESTOR Webcast We won’t waste time getting into the details, however the Nasdaq has denied MassRoots Inc.’s (MSRT) application to list its shares on the Nasdaq Exchange. Nasdaq officials noted that although the consumption of marijuana is legal in some form in 24 states and the District of Columbia, the use, sale and cultivation of cannabis remains a federal crime. investors understand bio-techs and their ability to produce tremendous capital gains. Additionally, institutional investors may feel cannabis bio-techs are less impacted by state and federal legislation versus other cannabis subsectors. An example of this is the University of Mississippi who has a contract with the federal government to grow cannabis, and Nemus Bioscience, Inc. (NMUS) who has a contract with the UniversiThe Nasdaq’s reason for denial can be quite ty of Mississippi to conduct cannabis R&D and confusing and contradictory, considering GW clinical trials. Pharmaceuticals plc (GWPH), INSYS Therapeutics, Inc. (INSY), Cara Therapeutics Inc. (CARA), NMUS is a cannabis bio-tech company trading Arena Pharmaceuticals, Inc. (ARNA), and Zy- over-the-counter (OTC), who has raised approxnerba Pharmaceuticals, Inc. (ZYNE) are all imately $5M - $7M from institutional investors cannabis companies trading on the Nasdaq Ex- in 2015. NMUS is one of a few cannabis comchange. However, I must note that all the above panies trading OTC, who have attracted institucompanies are considered cannabis bio-tech tional investors. companies, which leads me to believe that institutional investors have a high risk tolerance for What does all this mean for cannabis stocks? cannabis bio-tech and less of a risk tolerance for Majority of cannabis stocks trade OTC, which other cannabis subsectors. Maybe institutional subjects these companies to less stringent reg19