The group’s notice on Monday said companies with business activities violating USA federal law regarding marijuana could face a delisting review at the Toronto Stock Exchange.
But after Canadian marijuana producer Aphria Inc., which is listed on the TSX, announced an investment in Florida in April of this year, questions about the official policy mounted and regulators took notice. While some states have authorized the use and sale of marijuana, it remains illegal under federal law.
Canada has an established medical marijuana industry and is moving toward full legalization by mid-2018. But the situation has become more murky since Trump was elected. Instead of shutting these firms out of the market altogether, the regulators said that they’d be satisfied if companies arm the public with timely and accurate information about their dealings in the US, as well as caution investors that the USA could become more aggressive about its enforcement of federal laws.
The federal law relating to marijuana could be enforced at any time, and this would put issuers with USA marijuana-related activities at risk of being prosecuted and having their assets seized. The federal law relating to marijuana could be enforced at any time, and this would put issuers with USA marijuana-related activities at risk of being prosecuted and having their assets seized.
The company’s chief executive, Vic Neufeld, said in a statement on Tuesday that the TSX guidance “does not properly apportion the weight and context” that should be applied when looking at the variance between USA federal and state law.
The CSA has published CSA Staff Notice 51-352 Issuers with U.S. Marijuana-Related Activities, which outlines the staff’s specific disclosure expectations for issuers that have, or are in the process of developing, marijuana-related activities in the U.S.
Carleton called the CSA’s move an “extremely positive step”.
TMX disclosed its plans as Canadian securities regulators tightened up rules requiring firms to disclose their operations in the United States.
About 25 companies are listed on TMX exchanges that cultivate, distribute and possess marijuana, while others provide ancillary services to the cannabis industry, Chadda said.
Source: 420 Intel – United States