When OTC cannabis stocks uplist to the Nasdaq, there will be two big things that start happening…
Right now, if a United States company sells cannabis, it has to list on over-the-counter markets (OTCMKTs). That’s because selling cannabis is still illegal under federal law, and the Nasdaq doesn’t want to take the risk of listing a company that operates an illegal business.
But with potential changes in the law this year through the SAFE Banking Act or cannabis no longer being a Schedule 1 drug, the perceived risk of listing a U.S. cannabis company on a U.S. exchange is fading.
When that occurs, there are two important catalysts that will happen.
OTC Cannabis Stocks Trading on the Nasdaq: Big Money Enters
Right now, there are trillions of dollars sitting on the sidelines that are controlled by pension plans and mutual funds, waiting to invest in cannabis stocks that currently trade on the OTC.
When companies do jump from the OTC to the Nasdaq, you’ll see them start to make their moves.
Because the managers of these funds have tough jobs.
They have teachers, state workers, and millions of others that they need to not only protect their money for retirement, but to make sure that the money is also growing to build a nest eff.
To do that, there is no better place to invest than in cannabis stocks because cannabis stocks provide the type of gains these managers are looking for when they buy stocks for their funds.
In fact, we’re already seeing these funds invest in the early cannabis stocks that they have access to on major U.S. exchanges.
The California Public Employees’ Retirement System (CalPERS), which had $444 billion in assets as of January 2021, revealed that in Q2 2020, it raised its stake in Tilray Inc. (Nasdaq: TLRY) from 160,500 shares to 204,700 shares.
Keep in mind that is just one pension plan, and there will be trillions of dollars that start pouring into cannabis stocks as soon as OTC cannabis stocks are listed on the Nasdaq.
OTC Cannabis Stocks Trading on the Nasdaq: Enter the Robinhood Crowd
Right now, Robinhood does not allow its users to trade OTC cannabis stocks, and there are traders who are fine with that.
They either don’t want to have more than one brokerage account because they think having just one will help them keep better track of their investments.
Or they worry about paying fees to trade OTC stocks on other trading platforms.
Or they just don’t know the options that are available to them and are just buying Canadian cannabis companies and pick-and-shovel plays.
So when OTC cannabis stocks start uplisting to the Nasdaq, that opens up a flood of 13 million active traders just from Robinhood who want to get their hands on the marijuana stocks they previously weren’t able to buy.
The demand will be through the roof, and everyone else will be willing to pay you much more than what you paid for original shares.
So we’re going to help you get started by sharing with you one of the best cannabis stocks to own that is also a candidate to get listed on a major U.S. exchange by the end of the year.
If it’s not in your portfolio now, Curaleaf Holdings Inc. (OTC: CURLF) is going to be one of the companies you’ll want to make sure is definitely added.
Over the next decade in the United States, walking into a dispensary to buy a pack of pre-rolled joints will be just as commonplace as it is right now to go into a liquor store and buy a six-pack of beer.
Curaleaf Chairman Boris Jordan knows that, and he has been planning ahead to make sure his company is in the best position to make the most money as the U.S. is expected to become a $41.5 billion market by 2025.
Curaleaf wants to reach the 93% to 95% of U.S. households that don’t currently consume it. To do that, it will eventually become just a processor and manufacturer of cannabis products.
That will cut out the cost of grow operations, and it will also allow the company to focus more on its branding to stand out from the crowd.
“We’re making the products much more mainstream for our customer base – we’ll be no different than Coca-Cola or Frito-Lay,” Johnson said in an interview with Forbes.
The company already has operations in 23 states with a total of 101 dispensaries, making it one of the largest multi-state operators (MSOs). That’s a good start in reaching the 93% to 95% of U.S. households that aren’t currently consuming cannabis.
And as more states start to legalize, it’s going to expand across the country even more – organically and through strategic acquisitions.
So just like Starbucks or McDonald’s, Curaleaf will be everywhere its potential customers will be.
In terms of Curaleaf stock going from the OTC to the Nasdaq or NYSE and attracting a new pool of investors, in an interview with Bloomberg, Jordan said that, “Something’s gonna happen this year for U.S. cannabis players in terms of uplisting.”
Again, you will want to make sure CURLF is in your portfolio before that happens.
To your investing success,
Partner, RADD Capital
2 responses to “What Will Happen When OTC Cannabis Stocks Trade on the Nasdaq”
May 24 2021