Following last week’s rejection of MassRoots (OTC:MSRT) by NASDAQ, the National Cannabis Industry Association (NCIA), the industry’s leading trade organization, and The ArcView Group, a highly respected angel investor network focused on the cannabis industry, have drafted a letter to Robert Greifeld, the CEO of NASDAQ.  NASDAQ had rejected the company’s bid to uplist because it could be perceived as aiding and abetting the distribution of an illegal substance, according to the company.

The letter argues that the standard is vague and questions if the exchange would restrict a power company that supplies electricity to a grower, for example.  It also points to Alphabet Inc.’s (NASDAQ:GOOG) Google and Facebook (NASDAQ:FB) as potentially aiding and abetting yet maintaining their listings.  It echoed the “dangerous precedent” argument made by MassRoots previously.  Access to capital is a real challenge for the cannabis industry, and the inability of companies that comply with state-laws to access the NASDAQ is yet another impediment.

You can add your signature to the letter here.

Exclusive article by Alan Brochstein, CFA

Based in Houston, Alan leverages his experience as founder of online community 420 Investor, the first and still largest due diligence platform focused on the publicly-traded stocks in the cannabis industry. With his extensive network in the cannabis community, Alan continues to find new ways to connect the industry and facilitate its sustainable growth. At New Cannabis Ventures, he is responsible for content development and strategic alliances. Before shifting his focus to the cannabis industry in early 2013, Alan, who began his career on Wall Street in 1986, worked as an independent research analyst following over two decades in research and portfolio management. A prolific writer, with over 650 articles published since 2007 at Seeking Alpha, where he has 70,000 followers, Alan is a frequent speaker at industry conferences and a frequent source to the media, including the NY Times, the Wall Street Journal, Fox Business, and Bloomberg TV. Contact Alan: Twitter | Facebook | LinkedIn | Email