This applies to MGW as well Globe says Aphria, others feel the burn of CDS threat
2017-08-04 07:40 ET - In the News
Shares issued 138,819,504
APH Close 2017-08-03 C$ 5.94
Also In the News (C:GLH) Golden Leaf Holdings Ltd
Also In the News (C:IAN) iAnthus Capital Holdings Inc
Also In the News (C:VP) Vodis Pharmaceuticals Inc (2)
The Globe and Mail reports in its Friday edition that investors sent shares of cannabis companies with U.S. exposure tumbling Thursday after learning that Canada's clearinghouse for equities is considering a move that could disrupt trading of those stocks. The Globe's Christina Pellegrini writes that a ban is being contemplated by Canadian Depository for Securities Ltd. (CDS). The TMX Group subsidiary operates key back-office trading functions. While marijuana is legal in some form in more than two dozen states, it remains illegal under federal law. That has created a dilemma for CDS and TMX. Aphria, the Leamington, Ont., company with cannabis assets in Arizona and Florida, saw its shares fall 6 per cent on the Toronto Stock Exchange. On the Canadian Securities Exchange, which has become the go-to market for pot listings, many of the 10 cannabis companies with U.S. assets the exchange identified as being at risk if such a ban was adopted also saw their share prices decline. These include Nutritional High, Vodis, iAnthus and Golden Leaf. "Lawyers have advised me that the consequences would be far too vast and affect too many shareholders for a change like this to be made," said consultant Brayden Sutton.