Cannabis and Securities Law

Friends, sharing a good article from MJBizDaily with further perspective on Aphria.

The article also points to a recent notice issued by the Canadian Securities Administrators (the Canadian securities regulators) warning against misleading/unsupported promotional activities. This comes on the heels of a recent CSA warning about a lack of sufficient disclosures by public Cannabis companies.  This is all also true for US companies, both public and private – companies and boards have duties to their securityholders* and there are very tight rules about sales and disclosures.

 These help underlie the point that easy money isn’t easy. 

*Well, unless they’re waived because they’re a Delaware LLC and they’ve got a good corporate lawyer drafting the documents….


By: Marc Hauser