When it comes to stock listings and companies that cultivate cannabis, the United States is a land of regulatory hypocrisy. Whereas companies that are based in Canada have historically been allowed to offer SEC-qualified stock options to the public, the same is not true for companies based in the United States. That appears to be changing.
Goldenseed, a “California lifestyle cannabis and hemp brand” that is backed by music group Green Day’s bassist and co-founder Mike Dirnt, recently announced that it has become the first private U.S. cannabis cultivation company to be approved to sell SEC-qualified stock to the public. Per GlobeNewswire:
Mike Dirnt, bassist and co-founder of American rock band Green Day, announced that Goldenseed - a California lifestyle cannabis and hemp brand he advises and has invested in – is the first private U.S. cannabis cultivator ever qualified by the U.S. Securities and Exchange Commission to sell stock to the general public. Anyone who wants to invest in and actually own stock in a privately-held U.S. cannabis farm, can now do so for the first time in history for as little as $100.
Dirnt has been involved with Goldenseed as an investor, brand ambassador and advisor since 2018. “I’m excited to be a part of a farm that grows cannabis and hemp the way Goldenseed does,” Dirnt said. “People who want to invest probably already love this plant, and are believers in what I, and many others, consider to be nature’s medicine. I think Goldenseed honors all of that in the right way.”
Whether this particular stock offering is a good buy or not is something that investors will have to determine on their own after conducting robust due diligence. However, regardless of the merits of the stock offering from a profit potential standpoint, the fact that the stock offering is SEC-qualified is historic.
Hopefully this is the first of many such approvals to come in the near future. There is no valid reason why U.S. cannabis cultivation companies should be hindered from following in the footsteps of Goldenseed. Allowing Canadian cannabis cultivation companies to list on the U.S. stock exchange, while forcing U.S. companies to seek listings on the Canadian exchange, makes zero sense and negatively impacts the opportunities for investors everywhere.