One company wants to play in the big leagues, and it could mean more money for investors…

With cannabis being illegal under U.S. federal law, most marijuana firms have to list on over-the-counter markets. Executives at the NYSE and Nasdaq are allowing Canadian companies to list on their exchanges because those companies operate a business that is legal under Canadian law.

But KushCo Holdings Inc. (OTC: KSHB), a California-based company, is trying to make an important move and get listed on the Nasdaq. KushCo doesn’t touch the plant. Instead, it provides packaging and consolation services to the industry. That’s one strategy to get in on the big action.

In the eyes of the Nasdaq, that should make it seem like less of a risk than approving a U.S. cannabis grower to list on its exchange.

Now, our members who own KushCo may wonder what they have to do when the shares go from over-the-counter to the Nasdaq.

The easy answer is nothing. You will still own the same amount of shares, and the shares will trade as normal.

You can just sit back.

However, in terms of what this means for the cannabis company itself, it’s significant.

Listing on the Nasdaq and NYSE can send share prices higher for a very specific reason…

Bigger Markets and More Money

Being on the NYSE or Nasdaq means more prestige, more eyeballs on your company, and more legitimacy.

When a stock gets uplisted, there’s a list of likely institutions that wanted to buy the stock before, but were unable or willing to buy it from a lower-level exchange. OTC stocks don’t have the liquidity people, like hedge fund executives, want to see.

Mutual funds and pension funds also avoid lower-level exchanges for the same reason.

By that, I mean it’s harder for a hedge fund to place an order for millions of shares at a price it wants, and it’s even harder to get out of a position because there just aren’t enough buyers. Fortunately for us, we don’t have that problem when buying OTC stocks because we have smaller trades that can get filled.

So, thanks to being on a bigger exchange, a company can start attracting more big-time investors. I know I keep harking on this, but I want all of our members to understand how everything will shake out.

A stock price without big institutional investors can be volatile.

That’s why you’re not going to see shares for Procter & Gamble Co. have wild 20% price swings in a single day.

You’ll never guess what our experts uncovered about this popular cannabis company. For all the details on this company -and over 170 more – just click here.

The Vanguard Group, an investment management firm with $5.3 trillion in assets under management as of September 2018, owns 214 million shares of Procter & Gamble.

And that’s what I mean about prices being stable. With so many shares, you know Vanguard isn’t going to make any rash decisions. Even if retail investors panic for some reason and try to sell their shares of P&G, it won’t match up to the amount of Procter & Gamble stock the Vanguard Group holds.

We’re getting to that point of institutional investments creating stability. We’ve even seen the Church of England dip its toes into medical marijuana investments.

The dominoes are falling, and the shining moment will be when institutions like the California Public Employees’ Retirement System, the State of Wisconsin Investment Board, and Goldman Sachs Asset Management start putting billions into cannabis stocks.

Think about how much more the shares you own today will be worth when these big institutions want to own what you already have.

Greg Miller

Executive Director, National Institute for Cannabis Investors

P.S. Thanks to one landmark announcement, the CBD market has exploded – virtually overnight. And with applications for chronic pain, seizures, insomnia, anxiety, and more experts predict the market to grow more than 15 times faster than the cannabis industry. They’re even predicting profits to jump 3,622% by 2022. With this kind of growth, investors would be crazy not to consider this market. That’s why our experts have identified two CBD companies with massive profit potential…. And you can find all the details right here.


Comments

11 responses to “What to Do When a Company Goes from the OTC to the Nasdaq”

  1. Morning Greg how are you? Well I guess we are about to find out. Listen a few questions for you.
    1. Are problems with all the M&A activity holding our share prices back?
    2. What are the problems with Harvest and Health Recreation and Agerage Holding in Ohio and Pennsylvania?
    3. Where does the Cresco Labs and Origin house merger stand at this present time.
    4. What if any are the problems with Curleaf Labs?
    As always thank you for the information I hope you have a great day!!! Much success to all of us in the future!!!

  2. This is great information. I took your advice early on and bought shares in KSHB. Looking forward to what happens next.

  3. it looks like we are going to take out Dec lows, is it going to be earnings that turn the Market around at the end of Aug or something else ? just wondering what your take is . Thank you for all of the hard work you and your staff does even though it feels sometime we are going backwards.

    Keith M

  4. Hi,
    I trade with Merrill Edge and they have recently stopped supporting trading of EMHTF, Emerald Health. Could you tell me what brokerages you know that support this stock that I could trade with?

  5. Hey Greg, is Origin house taking a beating because Cresco wants lower share price during this acquisition? Hmmm

  6. $495 Elite membership and then big $$$$ to get IPO’s , and lots. Now $39 for CBD investors guide ? What was the $ five hundred for ?
    The Cannabis investors membership package is nice.

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