A new high has been reached for the cannabis industry as the New York Stock Exchange has given its approval to list a marijuana company on the exchange for the first time.
Innovative Industrial Properties, who targets medical-use cannabis facilities for acquisition with tenants that are licensed growers, was given approval by the NYSE for initial public offering, according to Forbes, and plans to list under the symbol IIPR.
The company had filed its IPO in the middle of October, noting the intention to raise $175 million through 8.8 million shares at $20 each, giving the valuation of the company at $202 million.
Forbes noted the REIT confirmed the listing was approved on November 17, but the NYSE has yet to discuss it.
Keeping in mind, however, recreational marijuana is still federally illegal, although four states voted in favor for its legalization the day of the US election (November 8). Because of this, Forbes said the NYSE could be pushing its own boundaries by listing a company that is not in compliance with the law.
In an interview with Forbes, Jeremy Unruh, general counsel of PharmaCann said Innovative Industrial Properties’ publicly-traded REIT will be the first opportunity industrial investors have to generate exposure in an industry lacking transparency.
“The IIP listing on the NYSE is every bit as important to the cannabis movement as the Rohrabacher-Farr Amendment barring the DOJ from spending federal funding to enforce the Controlled Substance Act against responsible medical cannabis licensees, or the commitment of Scott’s Miracle Gro to the cannabis industry,” Unruh said.
Gregory M. Sale from Seyfarth Shaw LLP wrote that the NYSE listing is “big news for the cannabis industry” because a listing on a major exchange “lends a measure of mainstream credibility to the industry, as well as greater access to investor dollars.”
With that in mind, Bloomberg reported recreational cannabis in the United States is estimated to be worth nearly $20 billion, and will no doubt continue blooming.
Clearly, exciting times are ahead for the cannabis industry. Although there’s no official word on whether or not the NYSE will list more marijuana-related companies on its exchange, Isaac Dietrich of Mass Roots told Forbes that exchanges are taking the industry’s growth “very seriously.”
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Securities Disclosure: I, Jocelyn Aspa, hold no direct investment interest in any company mentioned in this article.