MassRoots, which operates a social network for marijuana enthusiasts, is crying foul over Nasdaq’s decision to reject its request to sell stock on its exchange. Nasdaq cited concerns that law enforcement could consider the company as aiding and abetting the distribution of an illegal substance.
The Denver-based company plans to appeal the decision to the Nasdaq Listing and Hearings Review Panel. According to MassRoots CEO Isaac Dietrich, MassRoots is being treated unfairly by the exchange, which has listed four biotech companies that extract compounds from the cannabis plant for scientific research.
“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,” Dietrich said in a press release. “If we were a social network for tobacco users or alcohol consumers, the Nasdaq would likely be moving forward on our application even though alcohol and tobacco cause far more deaths and societal damage than cannabis ever will.”
A Nasdaq spokesman said it was against company policy to discuss listing decisions. [Read more at CBS Moneywatch]