We know from past articles that several companies with U.S. operations are listed on the stable nation-wide stock exchanges in Canada where their HQ is also located. This means that in Canada they have full banking rights and tax treatment under the law.
Many have their shares also listed on the OTC markets. Our cover company this month is an excellent example of such a company – MPX Bioceutical Corp (CSE:MPX; OTC:MPXEF). I strongly hope you take the time to dive deep into the content in our USA and Canadian editions this month on MPX as you may just like what you see! MPX has strong and growing revenues and has operations in Canada too. Our top stock lists include several USA companies that are in the many different sectors of the legal cannabis industry or are ancillary.
Returning to Canada for a moment, there was concern at one time that companies with cannabis operations in the USA may be delisted from their respective stock exchange. The primary reason given was that marijuana is a schedule 1 drug in the USA and is therefore illegal at the Federal level. Had there been a follow through on this it may have been one for the history books because the Canadian Securities Administrators would have effectively made a determination contrary to the reality of State supremacy in this matter as ruled already by the courts. But that scenario is now only the hypothetical and for the imaginings of others as on February 8th, the CSA determined that due diligence on compliance should be done by the listing exchanges and on a case by case basis. This is good news for US investors looking to invest in a marijuana company doing lawful business in the USA that is also listed on a national securities exchange in addition to the OTC. Needless to say, this is welcome news to Canadian companies and investors as well. CSA Bulletin
One of the top companies on our list is also a top holding of the HMMJ ETF and was a recent case study – Scotts Miracle-Gro Company (SMG). That company also has economic shock proof aspects because of its focus on gardening and lawn-care products.
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