The Toronto Stock Exchange issued a bulletin today regarding “Business Activities Related to Marijuana in the United States.” It provided clarity of its policy, suggesting that “Issuers with ongoing business activities that violate U.S. federal law regarding marijuana are not
complying with the Requirements.” The exchange cited direct or indirect ownership of direct cannabis companies, arrangements with them, providing goods or services to them and any sort of commercial interests as contrary to its policy.
Over the balance of the year, the TSX will be reviewing listed companies that are engaged in direct or ancillary services:
The Exchange notes that if a listed issuer is engaging in activities that are contrary to the Requirements, the Exchange has the discretion to initiate a delisting review under Policy 2.9 of the Manual.
Most Canadian LPs have not pursued U.S operations, with the exception of Aphria (TSX: APH) (OTC: APHQF), which has investments in Arizona (Copperstate Farms) and in Florida, through ownership of and licensing to Liberty Health Sciences (CSE: LHS) (OTC: LHSIF), which is also vying for licenses in Ohio. A handful of other companies listed on the TSX or TSX Venture have U.S. operations, but most Canadian companies with cannabis business in the United States are listed on the Canadian Securities Exchange (CSE), which has no similar issue. If the TSX were to delist Aphria, the company could move to the CSE or adopt the OTC in the U.S. (or a higher exchange) as its primary listing.