Canadian stock regulatory group reviews U.S. risk disclosure for cannabis companies

An umbrella group for Canada’s securities regulators is reviewing whether its disclosure-based guidelines for companies with U.S. marijuana-related activities remain appropriate in light of Attorney General Jeff Sessions’ decision to revoke Obama-era protections for state-legal MJ businesses.

The move by the Canadian Securities Administrators (CSA) comes after the organization issued disclosure-related guidelines last fall.

Fifty-six of the 343 listed securities on the Canadian Securities Exchange are in the medical marijuana business, and 17 of those have operations in the United States.

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The exchange recently asked those 17 companies to publicly detail any risks they face after Attorney General Jeff Sessions scrapped the Cole Memo.

The guidelines issued by the CSA in October outlined specific disclosure recommendations for companies with marijuana-related business interests in the United States. The guidelines also gave stock exchanges the leeway to allow or ban such activities.

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The guidance lifted a fog of uncertainty that hung over cannabis sector for months. But the CSA also said it would “reexamine” the guidelines in the event of a change to the U.S. federal government’s enforcement approach.

The Toronto Stock Exchange and its junior Venture Exchange don’t allow their listed companies to do business in the U.S. marijuana space, prompting a review of all marijuana-related companies on the TSE and TSXV.

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