Canada exchange asks pot firms to disclose risks on U.S. operations
05/01/2018 20:39
By Alastair Sharp
TORONTO, Jan 5 (Reuters) - A small Canadian stock exchange
said on Friday it has asked marijuana companies to provide
details on risks they face from any U.S. operations in the wake
of a Trump administration move to boost enforcement of
anti-cannabis laws.
The U.S. Justice Department on Thursday rescinded an
Obama-era policy that had eased enforcement of federal marijuana
laws in states that have legalized the drug, instead giving
federal prosecutors wide latitude on pursuing criminal charges.
urn:newsml:reuters.com:*:nL1N1OZ0P8
"In light of yesterday's announcement there are certainly
some disclosure issues that companies should address," Canadian
Securities Exchange Chief Executive Richard Carleton told
Reuters via telephone.
The exchange has contacted 17 cannabis companies with U.S.
exposure whose shares it lists, asking for public statements on
how the policy announced by U.S. Attorney General Jeff Sessions
could impact their businesses, Carleton said.
Those companies include CannaRoyalty Corp CRZ.CD and
Liberty Health Sciences Inc LHS.CD , he said.
The move follows an October notice from Canadian securities
regulators that U.S.-linked marijuana companies must clearly
warn investors about the risks, given the federal ban on
marijuana production and sales. urn:newsml:reuters.com:*:nL2N1MR1YA
Dozens of marijuana companies have gone public over the past
few years in Canada, helping them finance expansion in the
existing medical cannabis market and prepare to enter the
nation's recreational market, which is slated to open up in mid
2018.
Marijuana stocks have posted strong gains over the past
year, making the group one of the hottest sectors in the
Canadian stock market. urn:newsml:reuters.com:*:nL4N1OZ4FB
CannaRoyalty was one of the first CSE-listed firms to
comment on the impact of the new U.S. policy.
"We do not foresee the memorandum meaningfully impacting
the way that existing cannabis business is conducted within
legal states," CannaRoyalty CEO Marc Lustig said in a statement.
Carleton said he expects all firms to respond within days.
The others are: Alternate Health Corp AHG.CD , MPX
Bioceutical Corp MPX.CD , Nutritional High International Inc
EAT.CD , Golden Leaf Holdings Ltd GLH.CD , iAnthus Capital
Holdings Inc IAN.CD , Marapharm Ventures Inc MDM.CD , Friday
Night Inc TGIF.CD , Vodis Pharmaceuticals Inc VP.CD ,
International Cannabrands Inc JUJUa.CD , CannTrust Holdings Inc
TRST.CD , NanoSphere Health Sciences Inc NSHS.CD , Body and
Mind Inc BAMM.CD , High Hampton Holdings Corp HC.CD ,
Wildflower Marijuana Inc SUN.CD , and Tinley Beverage Company
Inc TNY.CD .
Some 60 marijuana companies have listed on the CSE, choosing
it over TMX Group Ltd's X.TO larger Toronto Stock Exchange.
TMX said in October that it might delist pot stocks with U.S.
ties. urn:newsml:reuters.com:*:nL2N1MR1YA
TMX told Reuters via email on Thursday that its guidance on
the matter from October stands.
(Additional reporting by Nichola Saminather; Editing by Jim
Finkle and Lisa Shumaker)
((alastair.sharp@reuters.com; +1 416 941 8118; Reuters
Messaging: alastair.sharp.thomsonreuters.com@reuters.net))
Keywords: CANADA MARIJUANA/LISTING