NASDAQ has denied marijuana startup MassRoots‘ bid to join the stock exchange.
The company is a social network that focuses on all things related to cannabis. NASDAQ said MassRoots were turned down due to the fact that possessing marijuana is still a federal crime and the move could hurt other cannabis companies.
The exchange stated that the move sets a dangerous precedent for similar companies as the legalization of the plant is still happening in a slow and consistent manner, allowing cannabis entrepreneurs to gradually build their business.
MassRoots was dismayed as the news, saying that the company met NASDAQ’s criteria with a $40 million market capitalization value and well over 300 shareholders.
