Canadian cannabis stocks take hit after report

Canadian cannabis stocks take hit after report

 Shares of the five licensed cannabis companies that trade on the the Toronto Stock Exchange were down Friday after reports surfaced that it could become harder for investors to deal in the shares of Canadian marijuana firms with U.S. assets.

According to the Globe and Mail, Canadian Depository for Securities (CDS) – a clearing house owned by the operator of the Toronto Stock Exchange, TMX Ltd. – is mulling whether to refuse to settle trades involving a handful of MJ firms with U.S. holdings.

CDS clears millions of trades daily between buyers and sellers.

Among the five licensed cannabis companies that trade on the TSE – which are considered bellwethers for the larger Canadian MJ industry – Aphria (TSE: APH) was down down 7.4% in midday trading from Thursday’s opening bell.

The licensed producer has ties to the U.S. cannabis industry through its interests in Arizona, Florida and potentially Ohio.

The other four companies saw stock declines as well:

  • Canopy Growth (Toronto Stock Exchange: WEED) was down 0.8% from Thursday’s open.
  • MedReleaf (TSE: LEAF) was down 1.3%
  • Aurora Cannabis (TSE: ACB) was off 6%
  • CanniMed Therapeutics (TSE: CMED) fell 2.3%.

All four told Marijuana Business Daily they do not have cannabis-related assets in the United States. They said the country is a no-go zone because medicinal cannabis is illegal at the federal level.

If CDS opts to proceed with the move, “we’re going to have to find some other way for providing for clearing and settlement if we’re going to continue to trade those securities (with U.S. assets),” Richard Carleton, CSE’s chief executive officer, told the Globe and Mail.

In a related development, TMX Group is reported to be close to announcing a policy on how it will handle Canadian cannabis companies with U.S. assets, such as Aphria, according to Bloomberg.

About
“If you can't figure it out, figure out a "work-around!" The NestEggg Group was founded with a firm belief that working exclusively with professional firms to help them see past their history into the potential of their futures. Your potential is limited only by your creativity. Jeff's business purpose— “why”—centers on changing results through viewing things in new ways. He expounds: “Changing our results requires changing our actions. Because what we do proves what we believe, only when we change our beliefs can we progress. New insights are what cause us to shift our beliefs.” So what results do you want to attain? Call Jeffrey (1-888-987-NEST) when it’s time for progress. About Robert "Jeffrey" Wolter, President The NestEggg Group, Inc & EgggsAct Tax, Inc. & Managing Member NestEggg Investment Advisors Jeffrey is a common sense and productivity strategist. He facilitates and teaches about growth, positioning, and pricing strategies; leadership; operations; business communications and philanthropy. What he does best—differently from others—is energize people while he shows them how to solve business effectiveness. He clarifies the intricate, huts new light. He encourages hope. He sets you up to make development possible. Jeffrey is recognized for his original ideas and success with practical implementation, even as he challenges the "norm". Jeffery is a skilled facilitator. His deep knowledge of his firm(s) operations and ability to understand the intricacies of All of his clients, gives way to sharp observation skills allow his grasp a firm’s nuances quickly. He then guides firm owners and their teams on their unique paths toward improved profitability, smoother operations, stronger cultures and how and when to give back. Since 1998, he's helped more than 5,024 QuickBooks users and business owners achieve results such as: expanding revenues, attracting and inspiring talent, aligning operations with long-term objectives, discovering and leveraging their differentiation, substantially increasing sales and proposal results, strengthening relationships with their clients, and finding more joy in their work. His 25+ year career background includes roles as entrepreneur, finance director, board of director for several nonprofit, creative business development, insurances agency owner, Wealth Management Firm owner, editor, Tax Specialist, Accounting Director, Mediator and more. Before creating his firm in 2007, Jeffrey was an accountant for several well know local firms and individuals. After building a successful accounting practice, he became intrigued and inspired by the uniqueness of how Insurance, Investment's/Wealth Management, Taxes and Accounting/Bookkeeping all tend to work together, he branched out and created his list of Affiliate Companies in 2012 & 2013 In 2013, joined the Intuit Accountants Council and has assisted in the continued enhancement of the popular QuickBooks (Desktop and Online versions) and did so until late 2015. In 2014 with the legalization of Marijuana, Jeff and his team have committed themselves to knowing as much about the industry and being there to offer Cannabis Compliant, Accounting, Tax & Insurance to business owners that have or need help in keeping in with the Federal government's "280E"
Contact Us

Send us an email and we'll get back to you, asap.

Not readable? Change text.