Canadian government clarified Listing of Cannabis companies
and my stockbroker's comments clarified the importance of this ruling!!
".C:ACB C:APH C:CMED C:LEAF C:OGI C:LDS C:WEED Globe says listing uncertainty ends for Aphria, rivals
The Globe and Mail reports in its Friday, Feb. 9, edition that cannabis companies that do business in the United States can keep listing, trading and clearing their shares in Canada. The Globe's Christina Pellegrini writes that on Thursday, the Canadian Depository for Securities said it is not in its mandate to judge any of the companies that have been allowed to list shares on any of Canada's four stock exchanges. The news will be a boost to almost two-dozen public firms that operate in the United States and are listed today on the Canadian Securities Exchange. The issue has weighed heavily on their shares. The clarity could also ease concerns of other American companies that were seeking to go public in Canada. The CDS released a document on Thursday outlining who does what in the equities markets. It confirmed that the rules governing what is listed should be left to stock exchanges and their regulators. "CDS's role is clearly not to be the decision maker of what should or should not be listed inside of the system," said CDS president Glenn Goucher. The Toronto Stock Exchange is not listing shares of pot companies breaching U.S. federal law. On the other hand, the CSE will."
I asked my broker to interpret this news [He is a very bright guy]
"It is good news for stocks like yours.
The Canadian securities regulatory body made an announcement two weeks ago that they were reviewing the rules related to Canadian companies trading on any Canadian stock exchange with business activities in the US. The regulatory body was considering not allowing any Canadian listed company with US activities to be able to keep their listing in Canada.
The TSX has already said they want no US activities with companies listed on their exchange. But the CSE has always said it is ok to have US activities for companies listed on their exchange. The announcement two weeks ago put in jeopardy the listings of companies on the CSE.
LDS is one of the companies that would have been affected by a delisting from the CSE.
Now though the regulatory body says that it is ok for CSE listed companies to have US activities. Essentially status quo. It was odd though that the market didn’t really take this risk seriously. It was a real threat but nobody priced in.
Your stock is all about the US budget passing and Rorhbacher – Blumenthal amendment getting passed as well. If this happens then your stock and all US stocks will go up.”
