Canadian firm becomes first pot producer to list on major U.S. stock exchange

Toronto-based CronosGroup is set to be the first marijuana company to list on a major U.S. stock exchange when it begins trading on the tech-heavyNasdaq composite on Tuesday.

The move is a significantmilestone for the company and the broader marijuanasector that has faced resistance from the Trump administration.

In January, the U.S. Justice Department had repealed an Obama administration policy that eased the enforcement of federal marijuana laws in states that legalized the drug.

Federal law in the U.S. still prohibits marijuana use, despite some states like Californiamoving to legalize it.

"This up listing to Nasdaqis a major corporate milestone and reflects the significant progress we have made in strengthening our corporate governance and expanding our global footprint," said Mike Gorenstein, CEO of Cronos Group in a statement on Monday.

The company is already trading in Toronto onthe TSX Venture Exchange and its shares were up over five per cent in the afternoon after news of the new listing.

Cronos shares are up over 200 per cent in the past year, similar to itscounterparts in Canada that have seen sharesskyrocket on the expected legalization of recreational marijuana in the country by this summer.

The Nasdaqlisting allows U.S. investors that werehesitantoverthe legality of investing in marijuanastocks outside of the country to now invest legally.

"We believe this will increase long term shareholder value by improving awareness, liquidity, and appeal to institutional investors,"Gorensteinsaid.

The company told Bloomberg that Nasdaq'sapproval came after itspent six months preparing itsapplicationfor the listing.

Cronosoperates two production facilities in Ontario and British Columbia and has operationsinternationally in Israel and Australia. It also has access to over 12,000 pharmacies in Germany.

The company will trade under the "CRON" ticker symbol on the Nasdaq, along with U.S. tech heavyweights such as Apple and Google.