17:57:38 EDT Fri 19 Apr 2024
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FP/CP say TSX, CSE diverge on welcoming U.S. pot stocks

2017-06-13 09:35 ET - In the News

See In the News (C-*TSE) Toronto Stock Exchange

The Financial Post reports in its Tuesday edition that there are dozens of U.S.-based companies that want to list their companies on Canadian exchanges. A Canadian Press dispatch to the Post quotes Bennett Jones partner Aaron Sonshine as saying, "We've had a number of clients interested in listing U.S. companies up here," adding that anecdotally he has heard there may be close to 100 U.S. marijuana companies looking to list in Canada. That poses a dilemma for the Toronto Stock Exchange, which could use the revenue at a time when listings are lagging, but also wishes to protect investors from political uncertainty, Mr. Sonshine said. Kristen Rose, a spokesman for the Ontario Securities Commission, said the watchdog is "aware of the concerns raised" and has been "actively engaging with the TSX." The Canadian Securities Exchange, or the CSE, has been more permissive, says Andrew Powers at Borden Ladner Gervais LLP. "They are focused more on disclosure rather than prohibition," says Mr. Powers. "The TSX doesn't want their listed issuers to be making these investments. The CSE will permit it but they are requiring detailed disclosure of risk factors regarding their investments in the United States."

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