Canada regulator repeats call for weed firms to disclose U.S. risks

TORONTO (Reuters) – Canadian regulators on Thursday reiterated their call for listed cannabis producers with U.S. businesses to clearly disclose risks of operating there, and warned of potential punishment if U.S. federal anti-marijuana laws are more strictly enforced.

The Canadian Securities Administrators (CSA) staff notice said stricter U.S. enforcement could result in “material consequences for any issuer with U.S. marijuana-related activities, including prosecution and asset seizure.”

The CSA notice, similar to one it issued in October, stopped short of taking any action against listed marijuana producers with U.S. operations.

In January, the U.S. Justice Department rescinded an Obama-era policy that had eased enforcement of federal marijuana laws in states that have legalized the drug. This raised fears that Canadian companies with U.S. operations could be open to prosecution.

The CSA urged marijuana companies to describe their involvement in the U.S. industry and prominently state that the substance is illegal under federal law. It also urged them to “carefully consider” any regulatory actions or changes that would result in changes requiring disclosure…

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