Marijuana social network is denied listing on Nasdaq

Nasdaq officials have told MassRoots, a sort of “Facebook for pot,” that it can't join the exchange.

The Denver-based social network has 775,000 users from the 24 states where marijuana is legal medicinally (including those states where it's also legal recreationally), who use the platform to find like-minded people in their area, learn about nearby dispensaries, and follow pot legalization news. MassRoots has said it meets the criteria for listing on Nasdaq—it has a $40 million market capitalization value and “well over 300 shareholders” through over-the-counter markets, according to CNN Money.

MassRoots alleges that the decision to deny the social media platform a place on Nasdaq was due to the fact that marijuana use and cultivation remains a federal crime. “On May 23, 2016, Nasdaq denied MassRoots' application to list on its exchange for being cannabis-related,” the company wrote. “We believe this dangerous precedent could prevent nearly every company in the regulated cannabis industry from listing on a national exchange, making it more difficult for cannabis entrepreneurs to raise capital and slow the progression of cannabis legalization in the United States.”

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