October 16, 2017 – Toronto, ON – The Canadian Securities Exchange (“CSE”) notes today that the Canadian Securities Administrators (“CSA”) have issued a staff notice clarifying specific disclosure expectations for issuers that have, or are currently in the process of developing, exposure to cannabis-related activities in U.S. states that have legalized such activities.
The CSE is very pleased that the CSA has issued this detailed notice, which provides significant clarity for all stakeholders in this sector. Some of the notable disclosure expectations are listed below.
All issuers with U.S. cannabis exposure:
Issuers with direct involvement in U.S. cannabis cultivation or distribution:
Issuers with indirect involvement in U.S. cannabis cultivation and distribution:
The CSA also noted that they may re-examine their views on the U.S. cannabis sector should the U.S. federal government change its “forbearance-based enforcement approach.”
“We are grateful to the CSA for issuing timely and carefully considered guidance regarding current and prospective reporting issuers focused on the U.S. cannabis sector,” commented Richard Carleton, CEO. “This document provides significant comfort to these issuers that their Canadian listings will remain in good standing as long as they provide the disclosure that is rightly required by regulators.”
“We are also committed to ensuring that there is no disruption to the central clearing, depository and settlement services provided for these issuers. We are working with the relevant stakeholders on this matter and are very confident that companies will continue to have trades in their securities cleared and settled.”
The CSE strongly recommends that market participants read the entire CSA notice, which is available here: http://www.osc.gov.on.ca/documents/en/Securities-Category5/csa_20171016_51-352_marijuana-related-activities.pdf
About the Canadian Securities Exchange:
The CSE is home to more than 300 uniquely listed issues covering a broad range of industry sectors. The CSE provides trade execution, smart routing, risk management, compliance and market information services for Canadian listed instruments.
Recognized as an exchange by the Ontario Securities Commission in 2004, the CSE is designed to facilitate the capital formation process for public companies through a streamlined approach to company regulation that emphasizes disclosure and the provision of efficient secondary market trading services for investors.
For more information, please visit www.thecse.com and our blog at http://blog.thecse.com
Contact:
Richard Carleton, CEO
416-367-7360
[email protected]