Marijuana social networking app MassRoots announced Monday that it has applied to be listed on the Nasdaq Capital Market. If accepted, the company would be the first cannabis technology firm on the exchange.
The Denver-based company
, founded in April 2013, has been listed on the OTC Markets Group’s OTCQB marketplace, usually reserved for developmental stage companies, since April of this year. MassRoots connects marijuana users to other enthusiasts and area dispensaries via mobile app.
Since the company does not handle or sell marijuana, it is available nationwide.
The app has about 500,000 users and lists more than 1,000 marijuana businesses, according to its website.
Medical marijuana has been legalized in 23 states, and recreational cannabis has been legalized in four states and the District of Columbia.
“Uplisting to the Nasdaq Capital Market would be a significant milestone not just for MassRoots, but the cannabis industry as a whole,” says Isaac Dietrich, chief executive of MassRoots, in a statement.
For a company to be listed on the Nasdaq Capital Market index, it must have 1 million publicly held shares, at least 300 round lot shareholders and have a minimum bid or closing price of $2, among other requirements.
MassRoots’ stock climbed nearly 6% to $1.24 in midday trading Monday, but hasn’t traded above the $2 mark since April 22. In a prospectus filed earlier this month, MassRoots reported an offering of about 49 million shares and had 96 shareholders of record as of July 22.
MassRoots plans to “strengthen corporate governance and take other steps to meet the Nasdaq Capital Market’s requirements,” according to a press release.
Application processing takes about six weeks, according to Nasdaq, but can be subject to change.