The Canadian Securities Administrators roundly criticized the disclosures of “certain reporting issuers” proposing to enter Canada’s medical marijuana industry. Typically, these companies propose to enter this industry in response to the Canadian government’s passage of the Marihuana for Medical Purposes Regulations that became effective in April 2014. CSA’s review covered 62 issuers. According to CSA, 40 percent of these issuers “raised serious investor protection concerns related to balanced disclosure.” Among other things, said CSA, “[w]hile the benefits associated with involvement in the medical marijuana industry were often discussed, these discussions were not consistently accompanied by disclosure about the risks, uncertainties, cost implications and time required before the issuer can begin licensed operations.” As a result, said CSA, “[w]e were disappointed at the level of deficiency identified in the original announcements by issuers.” Of all issuers within the scope of CSA’s review, 92 percent were required to file a clarifying disclosure document, which they did.

Totally Irrelevant (But Is It): Perhaps this may be a good example of the grass not always being greener on the other side (of the border)—at least when it comes to disclosures!