Canadian Bioceutical Corporation voluntarily delisted from the TSX Venture Exchange this year when the company was told it couldn’t pursue opportunities in the U.S. recreational market, said CEO Scott Boyes. The uncertainty has hampered the company’s efforts to partner with other larger Canadian firms, he said.
TMX hasn’t clearly explained its strategy and is depriving investors of a diversity of marijuana companies to choose from, said CannaRoyalty Corp. CEO Marc Lustig. The Ottawa-based company has the bulk of its assets in the U.S. and is listed on the Canadian Securities Exchange.
“They tell different companies different things about a policy, a made-up policy that doesn’t actually exist,” Lustig said by phone. “Nobody has an answer and nobody has a clear, consistent answer, which is a joke.”
That allegation isn’t true, Kee of TMX said.
“Ensuring compliance with TMX’s published rules and policies across our broad issuer base is an integral, ongoing function we perform and each issuer is handled on a fact-specific basis,” Kee said.
Rival Exchange
In the meantime, competitor Canadian Securities Exchange has become a haven for tiny, unlicensed Canadian companies as well as U.S.-based corporations barred from selling shares in their domestic markets.
Canada Exchanges Battle for Pot Stocks as Legalization Looms
TMX is signaling it has “deep concerns” about listing companies with U.S. exposure and is reviewing eligibility for listing, said Canadian Securities Exchange CEO Richard Carleton. Marijuana companies with U.S. investments already make extensive disclosures on their operations and any move to restrict or prevent companies from listing will be a disappointment to investors, he said.
Officials with Canadian Securities Administrators, an umbrella organization for provincial and territorial regulators, are currently discussing these issues with the exchanges, Ontario Securities Commission spokeswoman Kristen Rose said in an email.