The U.S. Securities and Exchange Commission has approved a share registration by a company that will engage in the cultivation and sale of marijuana, which could encourage other businesses that deal directly with cannabis to go public.
It marks the first time the SEC has signed off on a share registration by a company that plans to handle marijuana, according to a piece in the Wall Street Journal.
Terra Tech Corp. currently trades on the over-the-counter market. It primarily provides ancillary services to the cannabis industry but now plans to grow and sell marijuana in several states through its subsidiaries.
The registration will go into effect after 20 days. The SEC chose not to accelerate the registration, which would have made it effective immediately once disclosures were approved, according to the Journal.
Terra Tech had two previous stock registrations accelerated, but at the time the firm didn’t have any marijuana business interests.
An attorney working with Terra Tech said a government examiner cited “policy” as the reason for not accelerating the approval this time around, but the official didn’t elaborate.
The approval follows a move by the SEC in December to grant Terra Tech permission to use $6.8 million to launch dispensaries in Nevada, California and New York.