The Depository Trust Company (DTC) license allows Yield shares to be electronically traded via a market maker.
This means that financial securities will be distributed, settled and serviced through DTC’s automated process. As a result, there are lower costs associated in general for investors and brokers that are trading Canadian securities in the U.S.
“We are pleased to improve settlement of our shares for our current and future shareholders in the United States, being DTC eligible will make it much easier for many U.S. residents to buy our stock,” says Penny Green, chief executive officer of Yield Growth.
In other news, Yield has done a smart job as branding itself not just as a cannabis company, but also as a health and wellness company.
Thanks to the 2018 farm bill, nationwide dealing in hemp is legal, as long as you are extracting its oil and making beauty products. Early last week, the company announced that it will sell its line of cannabis and hemp root oil-based products online.
What else Urban Juve is doing:
- Product development
- Patent applications
- Operational systems
- Putting distribution and marketing platforms in place
This positions them to take a considerable stake in the emerging CBD market that’s expected to hit $1 billion sometime in the next three years, according to the Brightfield Group, a cannabis industry research firm.
Their line of products – Urban Juve – features a range of health and wellness products such as lip balms, face moisturizers and even an anti-ageing serum.
While these products can be bought online, the company also plans to sell them through retailers such as pharmacies, salons and beauty stores.
“U.S. distribution is a cornerstone of our sales strategy for all our brands. Already we have a deal in place to sell our THC and CBD infused products through a 400 retail distribution network in Oregon, and now we have launched U.S. e-commerce sales for our Urban Juve products, our next step is to set up sales agents in California to access the world’s largest cannabis market,” said Green
Now that cannabis is legal in Canada, we are beginning to see different variations and uses of the product. I think it’s too early to tell how big the market is for consumer goods that use cannabis extracts, but I do know that it exists. It makes sense for an emerging player like Yield to tap in early, but we’ll have to wait and see where they take it from here.
The ticker for Yield in the US markets is BOSQF.
Full Disclosure: Yield Growth is an Equity.Guru marketing client.