Canadian cannabis companies are lobbying the Toronto Stock Exchange to allow them to buy or invest in US marijuana companies, in a potentially transformative move that would allow them access to the much larger and more lucrative US market, according to people familiar with the matter.
TSX-listed cannabis companies are not allowed to cultivate or sell products containing THC in the US because marijuana is federally illegal. The TSX has previously threatened to delist companies that violate US federal law. But for Canadian cannabis companies like Aurora Cannabis and Canopy Growth, the US, with its much larger adult population,The US marijuana market could hit $75 billion over the next 10 years, if the federal government relaxes its prohibition on the drug, according to some Wall Street analysts. That's compared to the relatively paltry Canadian market, which has a much smaller population.
A spokesperson for TMX Group, which operates the TSX, declined to comment and pointed to the company's 2017 policy which forbids listed companies from violating US federal law. It remains unclear what a new policy would look like — or whether it's a change that would happen anytime soon, according to one person. What is clear, however, is that Canadian marijuana companies would gladly leverage their billions to enter the US at the first opportunity.
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