RE:RE:RE:RE:CSA opens floodgates to more USA Listings "Great News"ommmm, thanks for posting the TSX statement. Nothing in it gives me cause for concern. Aphria already made full disclosure and received the TSX blessing wehn they uplisted to the TSX. It might be another issue if Aphria failed to disclose their Copperstate activitites in Arizona and LHS deal that was in the works for Florida, but full disclosure was made and already approved by TSX.
There are certain procedures required to delist a company or even change the policy required to delist a company. Public hearings need to conducted. There is also the possibility of judicial review for any decsion made by the TSX. Theya re not the final arbitrators on thsi issue, even if they think they are.
I wonder what an Ontario Superior Court Judge would say to them after hearing they first approved Aphria's application and now were trying to revoke it for the very same reasons they granted approval in the first place.
Am I concerned. No. If anything I see today as a victory for all canadian lsited companies compling with the CSA notice to readers that are conducting business in the U.S.
The TSX has left themselves a lot of wiggle room to allow existing lsited TSX and TSXV marijuana companies to continue doing business in the U.S.
The CDA has made it balck and white. Disclose and you will be fine.
Ommmmmm wrote: I really hope you're right but the TMX did release an official bulletin today, which was fairly strong-worded and black and white. Unfortunately, this issue doesn't seem to be put to rest and is still uncertain imo. Very annoying.
https://www.tsx.com/resource/en/1609
The Exchange is aware that a number of U.S. states have legalized the cultivation, distribution or possession of marijuana to various degrees and subject to various conditions. Nevertheless, marijuana remains a Schedule I drug under the U.S. federal Controlled Substances Act. This means it is illegal under U.S. federal law to cultivate, distribute or possess marijuana in the United States. Furthermore, financial transactions involving proceeds generated by, or intended to promote, marijuana-related business activities in the U.S. may form the basis for prosecution under applicable U.S. federal money laundering legislation. While the Exchange is aware of the federal guidance1 concerning the enforcement of these legislative provisions, the Exchange notes that such guidance does not have the force of law and can be revoked or amended at any time.
Issuers with ongoing business activities that violate U.S. federal law regarding marijuana are not complying with the Requirements. Such business activities may include, in order of concern to the Exchange: (i) direct or indirect ownership of, or investment in, Subject Entities; (ii) commercial interests or arrangements with Subject Entities that are similar in substance to ownership of, or investment in, Subject Entities; (iii) providing services or products that are specifically designed for, or targeted at, Subject Entities; or (iv) commercial interests or arrangements with entities engaging in the business activities described in (iii). The business activities in (iii) and (iv) are referred to as “Ancillary Services Activities”.
quote=Monteviale]Ommmm, I hear you, but the CSA trumps the TMX from a legal standpoint. The TMX has not put out a formal press release and statements being reported today are just that, statements of an employee. Same thing happened in the summer. Don't forget there are about 12 companies listed on the TSX and TSXV that currently have operations in the USA. The TMX will not want to lose the fees of 12 companies. Also it would take years to delist a company and only then if they were found to be in violation of CSA policy. Also from a purely legal standpoint, the TSX did approve Aphria's listing after Aphria made complete disclosure. I'm sure the TSX doesn't want to expose themselves to legal action after approving Aphria application. If Aphria didn't make full disclosure that would be another story, but my understanding is that full disclosure of their US investments were made at the time they applied to be up-listed to the TSX. If anything, the notice to staff released by the CSA will open the floodgates for more Canadian listed companies to now do business in the United States. One last point, there was absolutely no mention in the press releases that the CDS halting trading of any stock. In my opinion that issue has been put to rest. No excuse now for other Canadian companies wanting to do business in the US. The doors have been kicked wide open.
Ommmmmm wrote: Monte, this is indeed good news but the TMX released statements after this and seem to be taking a much different, stricter approach to their exchanges (TSX and TSXV)? It's their decision to make and they made it sound like it's black and white and they would delist companies after their review who have U.S. assets that are federally illegal.
All is still good on the CSE though so companies can always go there so I don't see how it's a huge deal if just 2 companies (APH and MGW) have to move to the CSE. I guess if any of the LPs currently on TSX/V also want to start doing business in U.S. they'd have to move exchanges too.
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