In October, The Alkaline Water Company Inc. (TSXV:WTER) (OTC:WTER) announced that it had submitted an application to get listed on the NASDAQ exchange, one of the world’s premier stock exchanges and the second largest stock exchange in the world.
If the Company is successful, it would be one of the biggest milestones for the Company.
But that’s not all.
If approved for listing, it could also be a very big development for the industry. Alkaline Water is looking to get involved in the cannabis industry, and we haven’t seen any of the major U.S. exchanges accept a U.S. cannabis stock just yet.
Alkaline Water announced its plans to get into the infused-water business back in mid-September.
The Company is based in the U.S., has its headquarters in Arizona, and sells water across the country, something it wouldn’t be able to do with CBD-infused products…yet.
Selling any form of cannabis and trying to list on the NASDAQ adds a lot of complexity to its application. U.S. companies like MedMen Enterprises Inc (CNSX:MMEN) that have operations in the U.S. and that sell cannabis products have been forced to look to Canada, specifically the Canadian Securities Exchange, to be able to tap into the equity markets.
The only cannabis companies we’ve seen reach the U.S. exchanges have been Canadian ones like Canopy Growth Corp (TSX:WEED) (NYSE:CGC), Aurora Cannabis Inc (TSX:ACB) (NYSE:ACB), and Cronos Group Inc (TSX:CRON)(NASDAQ:CRON), to name a few. Operating in Canada, those companies are not running afoul with U.S. laws and have been able to list on U.S. exchanges without much issue.
Even though medical marijuana is legal in Arizona, and many states across the U.S., until cannabis is legalized federally, it’s likely to present problems for U.S. companies trying not only to get funding on the main exchanges, but simply to grow their business and expand across the country.
But if Alkaline Water is able to list on the NASDAQ, since it is only selling CBD-based products, it could prove extremely beneficial for shareholders.
Cronos, which was the first cannabis company to list on the NASDAQ, is said to have spent about half a year doing prep work – showing us just how hard it is to make the US exchange. It also means that if Alkaline Water gets a NASDAQ listing, it would be a huge win not just for the Company, but for investors involved.
There remains a lot of hurdles facing such a new industry. However, if Alkaline Water is successful in its bid to get on the NASDAQ, it will be a milestone of sorts. U.S. investors will be able to invest in a company that could soon sell cannabis-related products in the U.S. and is listed on a major U.S. exchange – not to mention that the Company has a well-recognized brand with products already in over 40,000 retail locations in all 50 states and nearly every Walmart in the US.
The good news for Alkaline is that if successful, the listing will open the doors for a lot more investment dollars and that will help grow the business. However, the Company would have to deal with a lot more scrutiny as well.
For the latest on Alkaline Water’s application and whether it gets approved, be sure to check back on MuggleHead, where we’ll keep you updated on the latest developments in the industry.
Mugglehead directors own shares of the Alkaline Water Company Inc. at the time of this article.