ManifestSeven, which recently released a report on marijuana industry sentiment, has now shared more details about its pending public listing on the CSE.
A California-based marijuana company is preparing for its Canadian listing after waiting for the end of the grueling summer months.
On Friday (November 1), ManifestSeven issued a letter to investors indicating it will take the final steps for its public listing on the Canadian Securities Exchange (CSE); it was originally planned for September.
The company held off because a variety of critical developments for the marijuana investing space did not arrive until later in the year, including the legalization of edible and infused products in Canada and the passing of the SAFE Banking Act by US Congress.
In the letter to investors, ManifestSeven Director and CEO Sturges Karban said the company is now working to update its original initial application form — which was filed with the CSE in May — since the company has advanced its position from earlier in the year.
Karban said the company anticipates approval of its application within a few weeks from official filing.
The executive said ManifestSeven was initially aiming to file its application right after the Labor Day holiday in the US when, according to him, “the global markets would presumably begin reemerging from their seasonal inertia.” Ultimately the firm decided to wait.
Despite the state of the investment landscape for marijuana plays, Karban said he is excited about the position his company is in.
“Upon surveying and analyzing the most distressed publicly-traded cannabis companies today, it is evident that almost all the recent fallout in the marketplace has resulted from self-inflicted and avoidable problems that are not applicable in the case of (ManifestSeven),” he said.
According to the executive, these issues in the market include: persistent undercapitalization, reckless cost structures (usually inclusive of excessive executive compensation) and onerous financing transactions.
ManifestSeven made headlines recently after it commissioned a study on sentiment surrounding marijuana stocks from high-end investors.
The report indicates a high level of confidence from current investors about their chances of making back their money based on the state of the market.
“Investors are seeing the industry’s first major market correction,” said Karban. “And yet, 71 percent of retail investors in the US and 73 percent in Canada say they expect investment in the cannabis industry to significantly grow over the next 12 months.”
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.