Canada Pot Stocks Drop as U.S. Law Conflict May Prompt Delisting
- Canadian exchange operator will vet all companies by year-end
- ‘If you’re violating federal law, you’re out,’ TMX said
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Canadian marijuana stocks slumped Tuesday after the country’s largest stock exchange said it may delist pot companies that run afoul of U.S. federal law.
The Toronto Stock Exchange will contact all companies that cultivate, distribute or possess marijuana, or offer services related to the drug in any jurisdiction, by the end of the year. If they’re found to be in violation of U.S. federal law, they could ultimately be delisted, said Ungad Chadda, president of capital formation for equity capital markets at TMX Group Ltd., the parent company for the Toronto Stock Exchange and TSX Venture Exchange.