The Green Organic Dutchman (TGOD.F -3.72%) has submitted an application to list its stock on the Nasdaq.
If approved by regulators, The Green Organic Dutchman will trade on the Nasdaq under the symbol "TGOD." The company said it would also continue to trade under the same symbol on the Toronto Stock Exchange (TSX).
"This is an important step in the growth of TGOD, one that will broaden our investor base and increase access for international investors as we build the leading global organic cannabis brand," CEO Brian Athaide said in a press release. "Our team remains focused on executing our business plan and creating value for our shareholders."
Athaide is correct in that uplisting from the over-the-counter (OTC) exchange to the Nasdaq has its benefits. It tends to lead to greater trading volume and lower volatility for a company's stock. It can also make it easier for companies to raise capital via stock sales, particularly to institutional investors. Additionally, Nasdaq-listed stocks are typically viewed as more legitimate than OTC ones by investors. All of these factors can provide a boost to a company's stock price, and several cannabis stocks have seen their prices rise sharply after uplisting to the Nasdaq or New York Stock Exchange.
With more than 200,000 kilograms of projected peak cannabis production, The Green Organic Dutchman is slated to be one of the largest growers in Canada. That's likely to make it a popular cannabis stock among investors seeking a way to claim their share of an industry that some analysts believe could generate $200 billion in annual sales within a decade.
Uplisting to the Nasdaq will help to make The Green Organic Dutchman's shares even more visible to these investors.