In response to the CSA Staff Notice, on October 16, 2017, the CSE stated in a press release that the CSA has provided “significant clarity for all stakeholders in [the cannabis] sector” and is “fully supportive” of the CSA’s Staff Notice.
Issuer Response to CSA and TSX Staff Notices
Several issuers have praised the CSA’s approach for providing a balanced framework for the Canadian capital markets that is a reflection of the current disclosure approach in the U.S.
By contrast, due to the broad nature of the TSX Staff Notice, concerns have been raised in that it is unclear what impact the execution of this notice could have on TSX-listed issuers, causing uncertainty as to how the TSX’s approach will affect investors and businesses in the cannabis sector.
Conclusion
U.S.-Related Cannabis Issuers should ensure that they meet all the CSA expectations regarding disclosure requirements while working to address concerns raised by the TSX’s Staff Notice. All cannabis issuers should continue to monitor the evolving legislation, regulations and regulatory notices impacting their business.
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Can I offer a space for consumption
on-site?
No – consumption on-site will be strictly prohibited. The Province has indicated that it will allow adults to use recreational cannabis in public spaces where tobacco is permitted. Use will be banned in areas frequented by children, including: community beaches, parks and playgrounds. The use of recreational cannabis will similarly be banned in vehicles. The Province will allow local governments, landlords and strata councils to restrict or prohibit recreational cannabis consumption under certain circumstances.
Are there any special considerations for rural retail license applicants?
Most of the considerations discussed apply to both types of licenses. However, the Province has indicated that it will introduce special provisions for retail licenses in rural areas, where standalone stores may not be feasible. The Province is considering different options for how to respond to problems associated with rural retail, including considering the use of the rural agency store model which is currently used for liquor in those regions.