TMX unlikely to change U.S. exposure rules for pot stocks, analysts say

While the operator of the Toronto Stock Exchange and TSX Venture may be losing a disproportionate number of pot firm listings to the Canadian Securities Exchange, that isn’t causing a significant enough revenue impact to make the TMX Group reconsider its stringent requirements, CIBC Capital Markets analysts Paul Holden and Calvin Young wrote in a note to clients. According to TMX’s rules, every issuer must comply with the laws in the jurisdictions they operate – meaning that cannabis companies with U.S. exposure can’t list on its exchanges. “Are TMX rules costing it a substantial amount of money? Our numbers suggest they are not (reinforcing our view that TMX is unlikely to change its listing requirements),” Holden and Young said.

Two directors resign from Namaste’s board of directors

In another twist in Namaste Technologies’ ongoing drama, the cannabis technology firm announced Thursday that two directors are resigning from its board. Kiran Sidhu and Sefi Dollinger have stepped down “to pursue other business interests,” Namaste said in a release Thursday, adding that the company is currently in discussions with potential candidates to add two additional independent directors. The resignations come after Namaste announced earlier this week that it’s on the hunt for a new auditor after PwC quit. Earlier this year, Namaste fired and sued former CEO Sean Dollinger, only to rehire him as an advisor a short time after the two sides reached a settlement.

Pot Pickups: Supreme Cannabis adds new board director

Toronto-based Supreme Cannabis has named Kenneth McKinnon, a partner at Citrus Capital Partners, as a new independent director on its board. McKinnon also serves on the boards of two Calgary-based energy firms, Touchstone Exploration and Alvopetro Energy. Supreme also said Scott Walters, a director since 2016 and now the company’s vice president of corporate development, has stepped down from the board. Supreme said the moves coincide with the company’s efforts to increase the number of independent board directors after recently graduating to the Toronto Stock Exchange.

DAILY BUZZ

“It will weaken them.”
- Former Mexican president Vicente Fox told BNN Bloomberg that cannabis legalization in his country would take at least 50 per cent of the estimated US$55 billion that Mexican drug cartels get from U.S. markets.

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