Aphria Inc. APHA

RE:RE:TMX Group’s Cannabis Woes Go Way Beyond CDS

[Monteviale]

YukonJer and TrollHunter, did you even read the articles I posted?  If you did, your comments suggest a total lack of comprehension of what was written and I would strongly suggest you read the articles again.   
 
In the article, “TMX Group’s Cannabis Woes Go Way Beyond CDS” the author expresses a view that is very favourable for Canadian listed LP’s doing business in the U.S.  It is a view that I have not seen articulated on here before, but thought that many readers who have been following the TMX / CDS issue would appreciate reading.  The article is the first article I’ve seen written on the clearinghouse issue of canadian securities since the TMX, CDS and OSC went dark in mid August. 
 
The author suggests that the whole TMX /CDS regulatory issue goes much deeper than what was first reported by the Globe and Mail back in August.  His point being the CSE issue is a diversion for bigger problems at Canada’s senior exchange.  I tend to agree with the author.  Not only is there an anti-competitive and anti trust issues, but there is a serious conflict of interest by having the TMX directly compete with the CSE while owning CDS.
 
The author’s point that any decision by CDS officials that affect listed companies, including decisions to continue clearing trades for listed cannabis companies having US based operations, should be entitled to due process is actually very good news for Aphria shareholders.
 
The second article published by the NY Times on August 25^th revealed US banks were threatening to withdraw access to US banking services from Uruguayan banks that were processing the proceeds from that country’s legal marijuana industry.  The author asks the legitimate question whether “US banks will threaten the same for Canadian banks when marijuana goes legal for recreational use on July 1, 2018”. 
 
The majority of Canadian listed LP’s are currently refusing to do business in the US because cannabis is still illegal at the federal level.  None of this will change after July 1, 2018 unless the US federal government removes marijuana as a schedule 1 drug.  It’s not hard to imagine a scenario where Canadian banks with US exposure will continue to sit on the sideline after July 1, 2018 instead of risking their banking relationship with the US.
 
By raising the above points, am I bashing?  NO.  Am I worried, NO.  I find it interesting that there are serious issues undermining the whole clearing of securities by the CDS that go way beyond the Cannabis issue.
 
YukonJer and TrollHunter, maybe it is best you continue to focus more on how long it will take Aphria stock to reach the moon instead of issues arising from TMX, CDS, OSC and the banking system and how these institutions interact with each other and the Cannabis sector.  Just saying...

M

MiikeD wrote: Monte, I too see this as an issue...if it were to occur, though I wouldnt lose sleep over it. It wouldn't make much sense for US banks going after Canadian cannabis, think of how messy that would get. Sessions can hardly contain legalization in the US as it stands. Trump has been silent on the entire issue, though during his campaign he stated numerous times that cannabis legalization will be left up to the states. The damage of relations between Canada and US banks would be devestating if there was a real threat. This article is based on "WHAT IF," and there is no hard evidence suggesting US banks are or will launch assault TMX.

The reason my statements sounds basic is because i wrote out a long page in detail with links and all, but then my internet timed out when I hit the post button and it all deleted lol. I will be keeping watch over TMX "issue", though once again, not losing sleep here.   

Monteviale wrote: I've attached a link to the article "TMX Group's Cannabis Woes Go Way Beyond CDS" at the bottom of this post.  I would strongly suggest that everyone take the time to read it.  Whole premise of the article is that CSE listed issuers with U.S. marijuana assets are not the ones investors need to worry about.  The CSE issue might be a diversion for bigger problems at the TMX.  

The CDS is a wholly owned subsidiary of the TMX Group, owners and operators of the TSX and TSXV Exchanges.  TSXV's only competitor is the CSE.  

By flexing its muscle prematurely, TMX Group has demonstrated in no uncertain terms that it exercises a monopoly in the clearance of securities in Canada...  Can you say anti-trust and anti-competitive!!!

It doesnt end there.  The TMX Group's Banks shareholders are growing nervous about the approach of July 2018.  Its conceivable that the US banking system may threaten to withdraw US banking services from Canadian Banks should they decide to process the proceeds from Canada's legal marijuana industry.  

TMX Group’s Cannabis Woes Go Way Beyond CDS