Show all postsFiltered by tag: Medical marijuana\Cannabis

Canadian Securities Regulators Provide Guidance on Issuers Engaging in Cannabis Related Business Activities in the US

On October 16, 2017, the Toronto Stock Exchange and the TSX Venture Exchange (collectively, the Exchanges) issued notices providing guidance to those companies with business activities related to the cultivation, distribution or possession of marijuana in the United States (the Subject Entities). In particular, the Exchanges’ notices provide that the Subject Entities could be subject to an in-depth review based on their continuous disclosure records, which could result in de-listing on the applicable Exchange. In contrast, the Canadian Securities Administrators (the CSA) took a more lenient approach in its Staff Notice issued on October 16, 2017, addressed to issuers engaging in cannabis related activities in the US.

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Standing Committee on Health Approves Amendments to Bill C-45 Regarding Cannabis Edibles and Concentrates

On Tuesday, October 3, 2017 the Standing Committee on Health (the HESA) approved a number of amendments to Bill C-45, the Cannabis Act (the Act).Two specific amendments will likely have a considerable impact on the recreational cannabis market:  

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Federal Government Introduces its Cannabis Tax Proposal; Alberta Unveils Proposed Provincial Framework

On Tuesday, October 3, 2017 the Government of Canada unveiled its proposal for a federal excise tax on the sale of cannabis. Under the proposal, a $1 tax would be levied on prices up to and including $10 per gram and a 10% tax would be levied on prices over $10 per gram. The proposal is for the tax revenues to be evenly split between the Federal and Provincial Governments.

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Liquor Control Board to Distribute Cannabis in Quebec

On September 29, 2017, government sources confirmed to Radio-Canada that Quebec's liquor board, the Société des alcools du Québec or Quebec Alcohol Corporation (SAQ), will oversee the distribution of recreational cannabis in the province following legalization in July 2018. Sources also confirmed that the legal age to purchase cannabis in Quebec will be set at 18, aligning it with both the mandatory minimum age proposed by the Government of Canada in Bill C-45 and with the province’s minimum drinking age. 

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Strategies for Issuers with Cannabis-Related Activities in the U.S.

On August 17, 2017, the TMX Group issued a statement announcing that it has engaged with the Canadian Securities Administrators regarding the clearing of securities of issuers with cannabis-related activities (including assets and operations) in the U.S. Although the TMX Group’s general position on companies engaging in such activities has been a source of speculation and uncertainty for some time, the announcement highlighted specific uncertainty about whether the TMX Group, which is the parent company of The Canadian Depository for Securities Limited ("CDS"), might make the securities of issuers with cannabis-related activities in the U.S. ineligible for clearing and settlement through CDSX. Although no such action has been taken or articulated, such action could materially impede the ability to trade in the securities of issuers with cannabis-related activities in the U.S. and thus have a chilling effect on the listing and financing of such issuers.

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LCBO to Control Retail and Online Cannabis Sales in Ontario

Yasir Naqvi, Attorney General, Charles Sousa, Minister of Finance and Dr. Eric Hoskins, Minister of Health and Long-Term Care, announced Ontario’s planned approach to the federal legalization of cannabis as proposed by Bill C-45, the Cannabis Act, this morning. Bill C-45 left significant discretion to the provinces for determining the appropriate distribution, sale and retailing of cannabis.

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Ontario Conducts Public Consultation on Cannabis Legalization

On April 13, 2017, the Government of Canada released Bill C-45, the Cannabis Act, which, as discussed in a prior blog post, deferred significant discretion to the provinces with respect to the distribution, sale and retailing of cannabis.

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Cameron Mingay Discusses Potential Marijuana Supply Crunch with Bloomberg

With the legalization of recreational marijuana in Canada slated to occur within the next 12 months, a looming concern is whether Canada's supply will meet its demand. In a recent Bloomberg article, Cameron Mingay discusses practical realities associated with ramping up legal marijuana production in Canada.

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Alternative Financing Options in the Cannabis Industry

The recent developments in Canadian cannabis policy and legislation have sparked significant investment in licensed cannabis producers. Until recently, equity financing has been the primary form of financing, with Canadian cannabis companies raising approximately $1 billion over the past twelve months.

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Disclosure Requirements for Non-Venture Issuers Regarding Women in Board and Executive Officer Positions – A Review

On June 7, 2017, the Canadian news cycle addressed cannabis industry insider criticism at the dearth of women on boards and in senior management positions at Canadian cannabis companies, with reports suggesting that 5% of board seats at publicly traded marijuana producers are occupied by women.

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Health Canada Improvements to the Licensing of Cannabis Production under the ACMPR

On May 26, 2017, Health Canada announced significant developments to the licensing process under the Access to Cannabis for Medical Purposes Regulations (ACMPR). As the medical cannabis industry continues to evolve, the Government of Canada has updated its licensing regime in order to streamline the process and enable increased production.

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Growing Pains: The emerging role of IP in selling Canadian cannabis

Licensed producers and others looking to enter Canada’s medical or recreational cannabis industry should be thinking about how they will distinguish their business, products and services from others, in what will undoubtedly become a crowded and competitive marketplace. Intellectual property protection available under Canadian and foreign laws should be an important part of that strategy.

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Health Canada Implements Mandatory Pesticide Testing of Cannabis

Health Canada has announced that it will require licensed cannabis producers to conduct mandatory testing of all cannabis products destined for sale for the presence of unauthorized pesticides.

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Draft Cannabis Act Released by Canadian Federal Government

Today the federal government released Bill C-45, the draft Cannabis Act. If enacted, this will make Canada the first G7 country to legalize recreational cannabis. Cannabis will remain illegal as the bill moves through the legislative process. If it is approved by Parliament, the bill could become law with a target date of no later than July 2018, according to the Government of Canada.

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Exporting Cannabis from Canada

A Licensed Producer (LP) can obtain a permit from the federal Minister of Health to export cannabis internationally from Canada to a single and specified importer. While export permits can currently only be used to export cannabis for medical purposes, some LPs are committing considerable resources on their international exportation efforts because of the current and potential future international opportunities within the global cannabis market. Additional regulatory information regarding cannabis exportation can be found in Subdivision G of the Access to Cannabis for Medical Purposes Regulations (ACMPR). 

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Canada’s Cannabis Opportunity in the Era of Trump

Although the United States government’s attitudes toward cannabis have eased in recent years, the election of President Donald Trump has generated renewed uncertainty surrounding the future of the U.S. cannabis market. Canada, conversely, will very likely soon be one of the first industrialized countries with fully legalized recreational and medical cannabis, and investment in the Canadian cannabis market has been unprecedented. Unburdened by the U.S.’s significant political and legal uncertainty, Canada has an opportunity to expedite its already rapid industry development to position itself as a global leader in the market for legal recreational and medical cannabis products.  

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Health Canada Announces Random Testing of Medical Cannabis for Prohibited Pest Control Product Use

In an announcement earlier today, Health Canada advised that it will be conducting random testing of medical cannabis products produced by licensed producers. 

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One Step Closer to Legalization of Marijuana in Canada: Release of Task Force Recommendations for Regulation of Cannabis

The Task Force on Cannabis Legalization and Regulation publicly released its report today outlining its recommendations on the Legalization and Regulation of Cannabis in Canada. 

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The Growth of the Cannabis Industry

Over the past decade, cannabis distribution in North America has evolved from a criminal offense to – well, still a criminal offense – but also a billion dollar legal industry. The lines are often blurred as the cannabis industry undergoes a major regulatory and legal overhaul. As an emerging industry, we have seen, and will continue to see, an increasing number of opportunities for the development and growth of cannabis companies in both Canada and the United States. The development of cannabis in the areas of life sciences and medicine has been accompanied by an expansion of the recreational market.

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The Ongoing Evolution of Canada’s Regulation of Marijuana

In the ongoing evolution of Canada’s marijuana laws, this summer, Health Canada implemented the new Access to Cannabis for Medical Purposes Regulations (“ACMPR”).  The ACMPR came into force on August 24, 2016 (replacing the old Marihuana for Medical Purposes Regulations) and provide increased access for Canadians who have been authorized by their healthcare practitioners to use cannabis for medical purposes.

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