Canadian cannabis stocks take hit after report

Shares of the five licensed cannabis companies that trade on the the Toronto Stock Exchange were down Friday after reports surfaced that it could become harder for investors to deal in the shares of Canadian marijuana firms with U.S. assets.

According to the Globe and Mail, Canadian Depository for Securities (CDS) – a clearinghouse owned by the operator of the Toronto Stock Exchange, TMX Ltd. – is mulling whether to refuse to settle trades involving a handful of MJ firms with U.S. holdings.

CDS clears millions of trades daily between buyers and sellers.

Among the five licensed cannabis companies that trade on the TSE – which are considered bellwethers for the larger Canadian MJ industry – Aphria (TSE: APH) was down down 7.4% in midday trading from Thursday’s opening bell.

The licensed producer has ties to the U.S. cannabis industry through its interests in Arizona, Florida and potentially Ohio.

The other four companies saw stock declines as well:

All four told Marijuana Business Daily they do not have cannabis-related assets in the United States. They said the country is a no-go zone because medicinal cannabis is illegal at the federal level.

If CDS opts to proceed with the move, “we’re going to have to find some other way for providing for clearing and settlement if we’re going to continue to trade those securities (with U.S. assets),” Richard Carleton, CSE’s chief executive officer, told the Globe and Mail.

In a related development, TMX Group is reported to be close to announcing a policy on how it will handle Canadian cannabis companies with U.S. assets, such as Aphria, according to Bloomberg.

One comment on “Canadian cannabis stocks take hit after report
  1. johnny on

    Why would that even matter as the states those Canadian companies are invested in are all LEGAL POT wise at the State level. The clearing house is just being ridiculous . If they are waiting till the FEDS. do something might as well wait for HELL to freeze over. Besides when the U.S. Government gets off its ass and does something then we just follow along. We are a bunch of idiots as well and that’s why our economy just follows behind the U.S. no matter what we do. Its all B.S. and we all know it. So grow some BALLS and forget the good old US of A

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