Company whose business plan includes marijuana gets SEC approval of share registration
In another sign that the times are changing, as far as legalization of marijuana is concerned, the U.S. Securities and Exchange Commission has approved a share registration by a company whose business model includes growing and selling marijuana.
Although illegal under federal law, the proposed marijuana business activity by Terra Tech Corp. is permitted under some state laws, reports the Risk & Compliance Journal page of the Wall Street Journal (sub. req.).
While the registration proceeded, the SEC indicated a lack of enthusiasm by declining to accelerate the registration, which requires a finding that doing so would be in the public interest, the article notes. This 20-day delay in approval, which becomes automatic at that time, could derail certain stock offerings but didn’t create a problem for Terra Tech, because its registration was for resale of convertible stock. An earlier Risk & Compliance Journal (sub. req.) article provides more details.
Attorney Randy Katz, who represents the California-based company, told the newspaper that the SEC examiner in charge of the registration said “policy” called for the agency not to accelerate registration. The SEC declined a request for comment by the newspaper.
