Canadian cannabis producers looking to invest in the U.S. marijuana sector are seeking changes in regulations that govern compliance for listing on the main Canadian stock indices, according to reporting by the Bloomberg News Network.
According to published reports, executives of Canadian pot companies listed on the Toronto Stock Exchange and the TSX Venture exchange are pushing the TMX Group, which operates the exchanges, to amend the current regulations that require listed companies to respect the laws of the countries where they operate. This means that Canadian cannabis producers cannot own cannabis assets in places like the United States where the substance is illegal – at least at the federal legal.
However, the passage last December of the U.S. Farm Bill, which legalized hemp, is widely being seen as a move toward the eventually legalization of cannabis in the U.S. So there may be room to start talking about a change in the rules. It would definitely give Canadian producers a head start in cracking the U.S. market.
There is no indication whether the TMX Group will change its regulations. Or, if it does, when it would happen, BNN reported. But the push is an indication that Canadian pot companies are preparing for the eventuality that the U.S. will follow Canada and legalize weed. In fact, most declared presidential candidates heading into the 2020 election in the U.S. have publicly supported the legalization of the substance. This is a clear indication there is a shift in the political support for the move.
Giving Canadian companies the opportunity to align themselves with partners in the U.S. market would definitely signal another big move in the ever-evolving cannabis sector landscape.