One of Canada’s stock exchanges has sought to ease concerns it could become harder for investors to trade the shares of Canadian marijuana companies with U.S. assets, saying such businesses can list their stocks provided they meet disclosure rules and other listing standards.
The Canadian Securities Exchange is “open for business” for MMJ companies with cannabis assets in the United States, The Globe and Mail reported.
The CSE has become a “hotbed” for marijuana companies looking to go public. Forty-six of the CSE’s 301 listings are marijuana-related companies, and 10 of those have business interests in the United States.
In a news release, the CSE said risk disclosure for MMJ companies with U.S. assets should include a “comprehensive discussion of the current legal framework, including the federal law and current enforcement initiatives, as well as the state and municipal laws pursuant to which an issuer will conduct its business.”
MMJ is illegal under federal law in the United States.
Last week, The Globe and Mail reported that the Canadian Depository for Securities – a clearinghouse – is mulling whether to refuse to settle trades involving cannabis firms with U.S. holdings. That would have an impact on MMJ companies on the CSE, as well as the much larger Toronto Stock Exchange (TSE) and the TSX Venture Exchange (TSXV).
The TSE, the TSXV and the CSE were closed Monday for a public holiday.