Recreational cannabis firm Friday Night Inc (CNSX:TGIF) has welcomed the clarification from the Canadian Securities Administrators on disclosure requirements for Canadian companies with US marijuana assets.
The Canadian Securities Administrators (CSA) issued a clarification document in which it acknowledged that the political and regulatory circumstances surrounding the treatment of US marijuana-related activities are uncertain.
“In the event that US federal law against marijuana is enforced, there could be material consequences for any issuer with US marijuana-related activities, including prosecution and asset seizure,” the CSA said.
The CSA said it expects issuers operating in the marijuana industry to carefully consider any legal or regulatory actions or changes in order to determine whether they would result in material changes that trigger timely disclosure obligations.
The CSA gave some specific disclosure requirements in its reference document, including the need to describe the nature of the issuer's involvement in the US marijuana industry and to prominently state that marijuana is illegal under US federal law, and thus there is an element of risk should the law be enforced.
"We commend the CSA for providing clarification on disclosure requirements for Canadian companies with US cannabis assets, and we are committed to maintaining transparent disclosure documents to all our investors" said Brayden Sutton, the chief executive officer of Friday Night.