Medical Kiwi denied sharemarket listing

Nelson-based medicinal cannabis company Medical Kiwi has been told it’s not suitable to join the New Zealand stock exchange.

The company said in March it was working towards a public listing, but NZ RegCo, the regulatory arm of stock exchange operator NZX Ltd, has denied the application.

Medical Kiwi was subject to ongoing inquiries by the Financial Markets Authority over claims it made during its $3 million capital raising late last year that it had a cannabis cultivation licence from the Ministry of Health.

The FMA inquiry would have to be completed before its application to list on the NZX would be considered again, Medical Kiwi said.

Aldo Miccio, Medical Kiwi’s chairman, said: ‘‘NZ RegCo has confirmed to Medical Kiwi that it awaits the outcome of such inquiries, and that this particular process is pertinent to its review of the company’s listing application.’’

Miccio, a former Nelson mayor, pledged to continue the push to list the company’s shares.

‘‘We understand that NZ RegCo has halted its review of our application while revisions are made in order to meet regulatory requirements,’’ he said.

NZ RegCo chief executive Joost van Amelsfort said: ‘‘Direct listings are a matter of discretion for NZX and NZ RegCo.’’ The regulatory arm took various factors into account when deciding whether companies could list their shares, he said.

‘‘NZ RegCo confirms it sought general information from the FMA on the nature and status of the FMA’s inquiries into Medical Kiwi’s August 2020 crowdfunding capital raise,’’ van Amelsfort said.

‘‘This was one, but not the only factor, in determining Medical Kiwi was not suitable for direct listing at this time. NZ RegCo also considered Medical Kiwi needed to be able to demonstrate a more developed operating model.’’

Miccio said: ‘‘Clearly, the application and listing process has taken longer than Medical Kiwi had earlier hoped.

‘‘However, the chief executives of NZ RegCo and Medical Kiwi have recently had constructive dialogue ... and work to prepare the company’s listing profile is continuing.

‘‘We have a clear understanding that our application, with further revisions, will be subject to review by NZ RegCo at the appropriate time. We look forward to that review process occurring sooner rather than later.’’

Medical Kiwi’s stated aim is to develop medicinal cannabis products in New Zealand.

‘‘Work to prepare the company’s listing profile is continuing.’’ Aldo Miccio Medical Kiwi chairman