SEATTLE, Jan. 15, 2019 (GLOBE NEWSWIRE) — via NEWMEDIAWIRE — Biome Grow Inc. (CSE:BIO) began trading on the OTCQB® on January 2, 2019 with the ticker symbol “BIOIF”. While the company was already listed on the OTC Pink exchange, the move to the OTCQB® exchange could significantly expand its presence in the U.S. capital markets. The OTCQB® introduces more stringent reporting standards and is generally trusted by more individual and institutional investors.
“We are excited to upgrade Biome’s U.S. listing to the OTCQB Venture Market,” said CEO Khurram Malik in the press release announcing the upgrade in listing from the OTC Pink exchange. “This is an important step and milestone for the company as it aims to increase its presence among American retail and institutional investors. This move will provide investors with additional liquidity and increased trading capacity.”
Prior to the uplisting, the company also secured The Deposit Trust Company (DTC) eligibility in the United States. The DTC is a necessary prerequisite for the electronic settlement of common shares of stock in the United States—without it, investors have a hard time efficiently buying and selling shares. With both of these in place, the company has made its stock available to any U.S. investors looking for exposure to the space.
Expanding Investor Access
There’s little doubt that cannabis stocks have been growing in popularity. While there have been peaks and valleys, Google Trends shows that the term “cannabis stocks” has been trending higher over the past two years across the United States. The two biggest spikes occurred when California legalized recreational cannabis in January 2018 and when Canada legalized recreational cannabis in October 2018.
Canada has become the undisputed leader in the global cannabis industry thanks to its robust federal regulatory environment. In fact, many companies with operations in the United States have opted to list on the Canadian Securities Exchange (CSE) before any of the U.S. exchanges. These trends have made it difficult for some U.S. investors to purchase the cannabis stocks without buying stock on a foreign exchange.
The good news is that these trends are starting to change. The OTC Markets exchanges have become a popular place for Canadian companies to dual-list their stock, particularly on the OTCQB® and OTCQX® exchanges. While many companies have OTC Pink listings, the lack of liquidity and reporting standards are a no-go for many U.S. investors trying to build portfolios—and particularly, institutional investors that are held to higher standards.
Biome Grow Inc.(CSE:BIO) (BIOIF) is well positioned within the Canadian cannabis markets. With its new U.S. OTCQB® listing, the company could reach a greater number of U.S. investors looking to invest in Canada’s nascent industry without buying stock on foreign exchanges. Investors may want to keep an eye on these trends as the uplisting could open the door to greater liquidity over time.
The move also marks another step on the company’s journey to become a leading cannabis conglomerate in Canada. With a diverse portfolio of operating businesses, the company provides investors with exposure to multiple parts of the industry, including high-end brands that are well positioned as the country moves into the recreational market.
For more information, visit the company’s website at www.biomegrow.com
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