Nov. 13 at 6:56 PM
$CHUC shutting down its entire hemp/CBD division (called Don Polly) and stopping all sales of CBD/hemp products — even though these products are 100% legal under federal law is encouraging. They want to "uplist" from the OTC market to a major national stock exchange like the NYSE American. Those big exchanges (and many big U.S. brokers) refuse to list or trade stocks of any company involved in hemp/CBD, even if it’s legal.
Bottom line, by cutting out CBD completely, Charlie’s removes the “cannabis stigma” so they can get listed on a bigger exchange (more visibility, credibility). More brokers will let people trade the stock, giving them much higher liquidity (easier to buy/sell shares). If we consider the financial impact of shutting down the Cannabis business unit, their sales are tiny (per Henry) compared to their fast-growing SBX disposable vapes. Closing Don Polly won’t hurt revenue much — but will help the stock price and shareholders by removing trading restrictions.