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In response to the CSA Staff Notice, on October 16, 2017, the CSE stated in a press release that the CSA has provided “significant clarity for all stakeholders in [the cannabis] sector” and is “fully supportive” of the CSA’s Staff Notice.
Issuer Response to CSA and TSX Staff Notices
Several issuers have praised the CSA’s approach for providing a balanced framework for the Canadian capital markets that is a reflection of the current disclosure approach in the U.S.
By contrast, due to the broad nature of the TSX Staff Notice, concerns have been raised in that it is unclear what impact the execution of this notice could have on TSX-listed issuers, causing uncertainty as to how the TSX’s approach will affect investors and businesses in the cannabis sector.
Conclusion
U.S.-Related Cannabis Issuers should ensure that they meet all the CSA expectations regarding disclosure requirements while working to address concerns raised by the TSX’s Staff Notice. All cannabis issuers should continue to monitor the evolving legislation, regulations and regulatory notices impacting their business.