TMX Group cracks down on marijuana companies that violate U.S. federal laws

The Canadian Press</span>
Published Monday, October 16, 2017 5:18PM EDT
Last Updated Monday, October 16, 2017 6:41PM EDT

TORONTO -- The TMX Group, the company that operates the Toronto Stock Exchange and the TSX Venture, says companies with business activities that violate U.S. federal law regarding marijuana could undergo a delisting review at the discretion of the TSX.

The group said in a statement that while some states have legalized marijuana to varying degrees and conditions, under federal law it is illegal to cultivate, distribute or possess the drug in the United States.

It said that financial transactions involving proceeds generated by or intended to promote marijuana-related business activities in the U.S. could result in prosecution in the States.

The group said listed companies "with ongoing business activities that violate U.S. federal law regarding marijuana are not complying with" its requirements.

The TMX Group said listed issuers should work to address any gaps in their compliance and if it notes any are engaged in any non-compliant activities it has the discretion to initiate a delisting review.

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