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Canadian securities regulators outline disclosure expectations and certain risks for issuers with U.S. marijuana-related activities

The Canadian Securities Administrators (CSA) today published CSA Staff Notice 51-352 Issuers with U.S. Marijuana-Related Activities, which among other things, outlines CSA staff’s specific disclosure expectations for issuers that have, or are in the process of developing, marijuana-related activities in the U.S.

Issuers with marijuana-related activities in the U.S. assume certain risks due to conflicting state and federal laws. While some states have authorized the use and sale of marijuana, it remains illegal under federal law. The federal law relating to marijuana could be enforced at any time, and this would put issuers with U.S. marijuana-related activities at risk of being prosecuted and having their assets seized.

“We expect issuers with marijuana-related activities in the U.S. to address the current legal and regulatory environment in their disclosures, including any risks that result from changes in the approach to enforcement of U.S. federal law,” said Louis Morisset, CSA Chair and President and CEO of the Autorité des marchés financiers.

The CSA’s disclosure expectations apply to all issuers with U.S. marijuana-related activities, including those with direct and indirect involvement in the cultivation and distribution of marijuana, as well as issuers that provide goods and services to third parties involved in the U.S. marijuana industry. Issuers are expected to provide these disclosures in prospectus filings and other required documents, such as their Annual Information Form and Management’s Discussion and Analysis.

CSA Notice 51-352, as well as a media backgrounder, can be found on CSA members’ websites.

The CSA, the council of securities regulators of Canada’s provinces and territories, coordinates and harmonizes regulation for the Canadian capital markets.

For more information:

Kristen Rose

Hilary McMeekin

Ontario Securities Commission

Alberta Securities Commission

416-593-2336

403-592-8186

Alison Walker

Sylvain Théberge

British Columbia Securities Commission

Autorité des marchés financiers

604-899-6713 

514-940-2176 

Jason (Jay) Booth

Andrew Nicholson

Manitoba Securities Commission

Financial and Consumer Services

204-945-1660

Commission, New Brunswick

506-658-3021

David Harrison

Steve Dowling           

Nova Scotia Securities Commission

Government of Prince Edward Island,   

902-424-8586

Superintendent of Securities  

902-368-6288 

Kimberly Ryan

Rhonda Horte

Office of the Superintendent of Securities

Office of the Yukon Superintendent of

Newfoundland and Labrador

Securities        

709-729-2602

867-667-5466

Jeff Mason

Tom Hall

Nunavut Securities Office

Office of the Superintendent of Securities

867-975-6591

Northwest Territories

867-767-9305

Shannon McMillan

Financial and Consumer Affairs

Authority of Saskatchewan   

306-798-4160

SOURCE Autorité des marchés financiers

For further information: Kristen Rose, Ontario Securities Commission, 416-593-2336; Hilary McMeekin, Alberta Securities Commission, 403-592-8186; Alison Walker, British Columbia Securities Commission, 604-899-6713; Sylvain Théberge, Autorité des marchés financiers, 514-940-2176; Jason (Jay) Booth, Manitoba Securities Commission, 204-945-1660; Andrew Nicholson, Financial and Consumer Services Commission, New Brunswick, 506-658-3021; David Harrison, Nova Scotia Securities Commission 902-424-8586; Steve Dowling, Government of Prince Edward Island, Superintendent of Securities, 902-368-6288; Kimberly Ryan, Office of the Superintendent of Securities, Newfoundland and Labrador, 709-729-2602; Rhonda Horte, Office of the Yukon Superintendent of Securities, 867-667-5466; Jeff Mason, Nunavut Securities Office, 867-975-6591; Tom Hall; Office of the Superintendent of Securities, Northwest Territories, 867-767-9305; Shannon McMillan, Financial and Consumer Affairs, Authority of Saskatchewan, 306-798-4160

Related Links

www.lautorite.qc.ca

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