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Originally Posted by superdog
Announced today that they are backing off of aspirations of the US market. It’s actually making the stock perform better.
They might very well come back to the US market at some point. But the CEO seems to really have his pulse on the beat of this industry.
This Marijuana Stock Is Waving Goodbye to the USA: Time to Buy -- or Sell?
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The Toronto Stock Exchange started harping about any TSX-listed Canadian Cannabis Cos having direct ownership of any U.S. assets when Cannabis is still U.S. federally illegal way back in October. This is not a new issue as Aphria has been working with the TSX to find an acceptable solution to not be in conflict with TSX rules on U.S. Federal Cannabis Legality rules.
The most likely solution will be to place their U.S. assets into their 38% owned, Liberty Health Sciences company, which is not listed on the TSX. That gives them indirect ownership, but not direct ownership. The beauty is that they will still have a stake in the U.S. (Florida, Arizona, and soon Ohio).
Kind of a best of both worlds solution to remain in compliance of TSX listing rules but not giving up U.S. participation.
All the top Canadian Cannabis companies were up today, but likely because of light volume (lack of sellers) as the Canadian markets were closed for Boxing Day. I’m betting Aphria and the others will give some of the gains back tomorrow, but you never know.