By Gregory J. Millman The U.S. Securities and Exc
Post# of 56324
Posted On: 01/28/2015 9:18:31 AM
By Gregory J. Millman
The U.S. Securities and Exchange Commission has allowed a share registration to proceed for a company whose business model includes cultivation and sale of marijuana, which are both illegal under federal law, though legal under some state laws.
This approval appears to be the first green light for a share registration by a company in this line of business and could set a precedent for marijuana dealers to access the equity markets, but the agency's ambivalence about such a business model is clear from the way it handled the registration.
Irvine, Calif.-based Terra Tech Corp.(TRTC) recently received approval for its disclosures and the registration of its shares.
Another company planning to cultivate and sell marijuana also has a pending application with the SEC, a source familiar with the company said.
(An expanded version of this report appears on WSJ:com http://blogs.wsj.com/riskandcompliance/2015/0...er-stock.)
-Gregory J. Millman; 415-439-6400; AskNewswires@dowjones.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
The U.S. Securities and Exchange Commission has allowed a share registration to proceed for a company whose business model includes cultivation and sale of marijuana, which are both illegal under federal law, though legal under some state laws.
This approval appears to be the first green light for a share registration by a company in this line of business and could set a precedent for marijuana dealers to access the equity markets, but the agency's ambivalence about such a business model is clear from the way it handled the registration.
Irvine, Calif.-based Terra Tech Corp.(TRTC) recently received approval for its disclosures and the registration of its shares.
Another company planning to cultivate and sell marijuana also has a pending application with the SEC, a source familiar with the company said.
(An expanded version of this report appears on WSJ:com http://blogs.wsj.com/riskandcompliance/2015/0...er-stock.)
-Gregory J. Millman; 415-439-6400; AskNewswires@dowjones.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
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