Cannabis - The Pains of Going Public

Friends - passing along a noteworthy review by the Canadian Securities Administrators (which coordinates securities regs across the provinces) about the general lack of appropriately sufficient disclosures by cannabis companies in their public filings.

Remembering that cannabis companies have really only been going public on the CSE for not very long, eventually I imagine this will shake out and investors will demand disclosures that are more in line with market expectations and customs (see, for example, WeWork’s very-short-lived attempt to report “community-adjusted EBITDA” (which isn’t a thing)).  Nonetheless, it does remind companies that, even when listing on a smaller exchange like the CSE, getting access to public capital means comes at a price.

https://www.bcsc.bc.ca/Securities_Law/Policies/Policy5/PDF/51-357__CSA_Staff_Notice___October_10__2018/

By: Marc Hauser