While Canadian licensed producers seek to list on U.S. exchanges such as NASDAQ and the NYSE, the reverse has also held true, with hemp and cannabis companies from the U.S. seeking to list on stock exchanges north of the border.
Charlotte’s Web Holdings, Inc. (CSE: CWEB; OTCQX: CWBHF) was already among the ranks of U.S. companies trading internationally, but today announced a move to a different market after receiving conditional approval to list common shares on the Toronto Stock Exchange (TSX).
The company’s existing shares will de-list from the Canadian Securities Exchange (CSE) and begin trading under the ticker symbol CWEB on the TSX at the start of business tomorrow morning, Friday, May 31, 2019.
The move comes after the company’s initial public offering back in August of 2018 and follows the passage of the U.S. Farm Bill late last year, which legalized industrial hemp operations.
With the Farm Bill offering legitimacy to the hemp industry, companies such as Charlotte’s Web are now potentially looking at big changes in how they do business with CBD products. Most notably, the Food and Drug Administration is set to hold a public hearing regarding potential regulations for CBD manufacturing and marketing on May 31.
Discussing the transition from the CSE to the Toronto Stock Exchange, Charlotte’s Web co-founder and chairman Joel Stanley commented:
To mark the occasion, the company will host a market opening ceremony live stream from Colorado on Monday, June 3, 2019 that can be viewed here.
This transition from the CSE to the TSX follows a senior management shakeup last month at Charlotte’s Web when Hess Moallem stepped down from the Chief Executive Officer position and was replaced by former Kellogg executive Deanie Elsner.
Earlier this week, Charlotte’s Web also released the company’s Q1 2019 financial report, revealing a gross profit of $15.9 million and a net income of $2.3 million. In addition, the company hit a milestone with products being shipped to 6,000 retail locations covering 18 different states in the U.S.