MassRoots, a social and technology platform targeting the cannabis community, was told Monday that the Nasdaq would be denying their application for listing, according to a company statement. The Nasdaq determined MassRoots could be seen as be aiding and abetting the distribution of an illegal substance, and was therefore unwilling to proceed with the company’s listing application.
“With this decision, the Nasdaq has set a dangerous precedent that will prevent nearly every company in the regulated cannabis industry from listing on a national exchange,” MassRoots CEO Isaac Dietrich said in the statement.
“This will have ripple effects across the entire industry, making it more difficult for cannabis entrepreneurs to raise capital and slow the progression of cannabis legalization in the United States.”
MassRoots has requested the Nasdaq’s denial letter in writing and plans to appeal the decision.