Today is an historic day for the public cannabis market. The Association for Responsible Public Cannabis Companies is a self-regulatory organization focused on the improvement of the public marketplace for cannabis companies. Emily Paxhia and I are board members of this new organization and are very honored to participate with such an esteemed group. We believe there is tremendous opportunity to set a high standard for public companies to achieve in the OTC market.
If you’re unfamiliar with the typical difficulties of the OTC market, there are a myriad of ways that investors can face issues that are different from the exchanges. Some of these include lack of transparency, audits, 3rd party board of directors, etc. Also, some OTC companies are often noted for having unnecessarily “pumpy” press releases, only designed to highlight the side of the picture that they want potential investors to see.
The overseeing organizations such as FINRA are far too taxed to review each and every one of these companies on a regular basis, so it makes it easier for bad practices to carry on. The idea of the ARCPC is to elevate the companies that take it upon themselves to really act at a higher level. This is welcome progress to say the least!