US – Canda Cannabis deals are back on track. On Jan 12, CSG released a note saying they were reviewing their policy about cannabis companies listed on Canadian exchanges that had exposure to the U.S.
The companies feared they could be delisted from Canadian exchanges.
Reacting to a tricky situation Canadian Securities Administrators has stepped and released a guidance.
According to the new guidance CSG it will not take any dramatic action against companies with risky assets south of the border.
“Effectively what it says is its business as usual…. They’ve said these are companies that are allowed to list in Canada, individual exchanges can make their own decisions as to whether to list these entities. Really it just increased the disclosure,” he added.
Companies will be required to disclose more information about potential risks related to their own U.S. operations and those of third-party partners. The CSA warned that companies that don’t comply with the enhanced disclosure rules could face punishment.
CSA also said that companies should disclose more information about potential risks related to their own U.S. operations and those of third-party partners.
“We view this development positively for Canadian-listed companies with U.S. operations, as it significantly reduces their risk profile, and maybe the spark investors need to take advantage of attractive valuation opportunities,” Russell Stanley, an analyst with Echelon Wealth Partners.
CEO of Ottawa-based CannaRoyalty Corp, Marc Lustig welcomed the move and mentioned it as a positive sign.
“Today’s ruling is really just a reconfirmation of their earlier view,” — he said.
“It’s extremely positive not just for Canadian companies like CannaRoyalty that have U.S. assets, but it’s quite positive for the Cannabis sector as a whole.”– he added.