Aldo Miccio, chairman of Medical Kiwi, says the company’s NZX efforts are being put on hold.
Nelson-based medical cannabis company Medical Kiwi has learned it is not eligible for entry on the New Zealand stock exchange.
The company announced in March that it was working towards a stock market listing, but NZ RegCo, the NZX regulator, has denied the application.
Medical Kiwi was the subject of ongoing investigations by the Financial Markets Authority into allegations it made during its $ 3 million fundraising late last year that it had obtained a cannabis cultivation license from the Department of Health.
The FMA investigation would have to be completed before their application for inclusion in the NZX would be re-examined, said Medical Kiwi.
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Aldo Miccio, Chairman of Medical Kiwi, said: “NZX RegCo has confirmed to Medical Kiwi that it is awaiting the outcome of such investigations and that this particular process is relevant to the review of the company’s listing application.”
Miccio, a former mayor of Nelson, promised to continue the push to list the company’s shares.
“We know NZX RegCo has stopped reviewing our application while changes are being made to meet regulatory requirements,” he said.
RICKY WILSON / Stuff
Companies list their stocks on the NZX so that their investors can get accurate prices for them, but also to trade their stocks.
Joost van Amelsfort, CEO of NZ RegCo, said: “Direct listings are at the discretion of NZX and NZ RegCo.”
Various factors were considered when deciding whether companies could list their shares, he said.
“NZ RegCo confirms that the FMA has obtained general information on the type and status of the FMA’s investigations into the crowdfunding capital increase of Medical Kiwi in August 2020. This was one, but not the only factor in determining that Medical Kiwi was not eligible for direct listing at the time. “
He said, “NZ RegCo also believed that Medical Kiwi must be able to demonstrate a more sophisticated operating model.”
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Miccio said, “The application and listing process has clearly taken longer than Medical Kiwi previously hoped.
“However, the directors of NZX RegCo and Medical Kiwi have recently had a constructive dialogue on issues related to the listing process and work on establishing the company’s listing profile is ongoing.”
“We have a clear understanding that our application, with further revisions, will be considered by NZX RegCo in due course. We look forward to this review process happening sooner rather than later, ”he said.
Medical Kiwi’s stated goal is to develop cannabis medicines in New Zealand.