Here is the current state:
The Toronto Stock Exchange will contact all companies that cultivate, distribute or possess marijuana, or offer services related to the drug in any jurisdiction, by the end of the year.
‘Offer services’ is pretty broad, and that’s something Aphria has a problem with:
“The objective application of such staff notice by the TSX to any entity engaging in activities related to the cultivation, distribution or possession of marijuana in the U.S. or entities engaging in ancillary services activities may prove to be challenging in determining actual compliance with such guidance,” the company said in a statement.
This is not the first time TMX has cut a swathe through the marijuana sector by wondering aloud if it might start shoving party guests over the balcony. The last time they talked about delisting companies it cratered weed stocks across the board for a few days.
Of course, while the exchange could set delisting plans in place, they could also not do so. Because, frankly, any chance the TSX is going to delist Aphria, or anyone else on their exchange (or even realistically threaten to do so) who got their listing while they were already doing business in the US, because they’re legally investing in a legal business in a US state where medical marijuana is legal, is ridiculously unlikely.
And if it happened, lawsuits would crash down on them. They know this.
Rather, what the exchange is hoping to do is make US authorities happy that it’s carrying their water, while also hoping nobody pushes it into a corner and forces actual action.
So Aphria takes a hit, because it has a Florida-based (legal) investment, and others doing leaseback deals or financing grow buildouts or investing in dispensaries or CBD products get to live in fear while investors shy away from them – for a week or so, anyway.
