The struggle over the legalization of marijuana in the United States has created a bit of uncertainty in the Toronto Stock Exchange’s relationship to US companies that produce the mind-stimulating drug.
Aphria Inc, an Ontario-based producer of marijuana says it met with representatives of the TSX a week ago to talk about the company’s exposure to US markets and the risk that exposure subjects the company to.
Vic Neufeld, CEO of Aphria, said that the company re-committed to working with the TSX as it carefully studies the developments in the United States as they happen. Earlier in October the TSX warned companies that the US federal laws take precedence over the state laws, and, at least right now, federal US law holds marijuana to be an illegal substance. The potential for economic trouble exists for companies like Aphria which have investments in Florida and Arizona, where marijuana is legal for medicinal only and recreational use, respectively.
The TSX said that companies on their exchange that do not comply with US federal law are not in compliance with their requirements to be listed on their exchange.
Neufeld said that he would like to see his company remain on the TSX, and right now has no plans to move Aphria to the more pot-friendly Canadian Securities Exchange. However, if an agreement with the TSX can’t be reached Neufeld said there are other options, such as creating a spin-off for its US business which can be listed separately on the CSX.