TMX Group cracks down on marijuana companies that violate U.S. federal laws
TORONTO — Companies with business activities that violate U.S. federal law regarding marijuana could undergo a delisting review at the Toronto Stock Exchange, said The TMX Group, which operates the main index and TSX venture.
“Based on our quality control and standards that we have set for our market, our rules say that you cannot be in violation of applicable laws and regulations in the jurisdictions in which you run your business,” said Ungad Chadda, president of capital formation, equity capital markets.
The group issued a staff notice Monday, saying U.S. federal law takes precedence over state laws, and issuers with ongoing business activities that violate the federal marijuana law are not complying with the requirements.
The clarification has been hotly anticipated by Canadian marijuana companies looking to get a foothold in the U.S. marijuana market as well as U.S. companies that want to access capital from Canada’s public markets.