As we reported in our October 2017 bulletin, the Canadian Securities Administrators (CSA) published Staff Notice 51-352, which outlined a disclosure-based approach to highlight risks facing issuers with marijuana-related activities in the United States. The CSA notice took into account the existence of a U.S. federal government forbearance approach (outlined in the Cole Memorandum) to the enforcement of federal laws relating to marijuana.

On January 4, 2018, the U.S. Attorney General rescinded all previous guidance specific to federal law enforcement relating to marijuana. In response to this change in enforcement approach, the CSA announced on January 12, 2018 that it is considering whether its disclosure-based approach for issuers with U.S. marijuana related activities remains appropriate. The CSA said that it will provide an update on its position shortly.

This is also a good time to remind TSX-listed issuers (and those investing in TSX listed issuers) with marijuana-related activities that the TSX believes that issuers with ongoing business activities that violate U.S. federal laws regarding marijuana are not complying with the TSX Company Manual. Read more in our October 2017 bulletin