A major Canadian bank has changed its sentiment on cannabis stocks and increased its list of recommended stocks, report says.

Toronto-Dominion (TD) Bank has added 13 cannabis stocks to a list its advisers use as guidance before recommending to investors, a report from The Globe and Mail indicated on Sunday (July 1). This list now includes a total of 16 cannabis listings across the Canadian public markets.

According a spokesperson for TD, in order to qualify for the bank’s list stocks can only be listed on the Toronto Stock Exchange (TSX) or TSX Venture Exchange, removing the Canadian Securities Exchange (CSE) and the Aequitas NEO Exchange.


Cannabis - Will The Fortune 500 Join The Party?

Our Exclusive FREE Report Contains Information You NEED To Know About Cannabis Stock Investing!

The report also indicates none of the four leading Canadian marijuana exchange-traded funds (ETFs) made it into the TD list.

US exposure leaves two major cannabis companies off the list

Issuers will also be required to not have any sort of exposure into the US cannabis producing market. Despite several states legalizing the drug and a grassroots movement to legalize it completely, under the federal umbrella cannabis remains illegal.

Due to this restrictions, Aurora Cannabis (TSX:ACB) and Aphria (TSX:APH) were excluded from the TD list despite being two of the biggest market-cap companies in the space. Combined, the two producers amount to nearly a $C8 billion market-cap and trade on the TSX.

In February Aphria dumped its US assets after a standoff with Canadian market regulators over the legality of listing on the TSX and owning an interest in the technically illegal market.

The Canadian producer was forced to sell an Arizona-based cannabis producer and has set out to eliminate its stake in Liberty Health Sciences (CSE:LHS). Aphria sold 26,716,025 shares it owned in Liberty Health, leaving the company with a 28.1 percent interest in the US operator, set to be divested after a lock-up period is completed.

Aphria intended to sell its stake of Copperstate Farms, the Arizona producer to Liberty Health. However, shareholders of Copperstate voted against the purchase and exercised their right of first refusal.

Similarly, in June, Aurora announced it will be divesting its shares and warrants of subsidiary Australis Capital, an investment company seeking assets and interest in the real estate and cannabis sectors in the US.


Cannabis - Will The Fortune 500 Join The Party?

Our Exclusive FREE Report Contains Information You NEED To Know About Cannabis Stock Investing!

Canadian regulators offer guidance on US risk

This year, after the Aphria dispute with the TMX Group, the Canadian Securities Administrators (CSA) issued an update on the stance of cannabis companies with association to the US market.

“A disclosure-based approach remains appropriate in the current circumstances,” CSA chair Louis Morisset said after the regulator reviewed the delisting potential and risk scenarios of these stocks.

However, in order to maintain a TSX or TSXV listing, cannabis companies still can’t hold interest below the border. Cannabis stocks in the CSE benefited from the CSA ruling and even enjoyed a newfound bullish sentiment from financial experts.

Investor takeaway

Despite earlier in the year showing a hesitation to recommend these stocks, TD has turned around and accepted them now in terms of what its advisors can recommend to investors.

“Our most recent update reflects our ongoing evaluation of this emerging market,” TD spokesman Paolo Pasquini told The Globe and Mail. “We expect our views will continue to evolve and develop with the industry.”

Here’s a look at the complete list of recommended cannabis stocks on TD’s list:

Don’t forget to follow us @INN_Cannabis for real-time news updates!

Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: Emblem, Naturally Splendid, Harvest One Cannabis and The Supreme Cannabis Company are clients of the Investing News Network. This article is not paid-for content.


Cannabis - Will The Fortune 500 Join The Party?

Our Exclusive FREE Report Contains Information You NEED To Know About Cannabis Stock Investing!

Ayurcann Holdings Corp. (CSE: AYUR) (the “Company” or “Ayurcann”) an integrated Canadian extraction company specializing in the processing of cannabis and hemp for the production of oils and various derivative products, announces the granting of stock options and restricted share units.

The Company has announced that it has granted incentive stock options to directors, officers, employees and consultants of the Company to purchase an aggregate of 1,000,100 common shares under the Company’s Stock Option Plan. Each option is exercisable at a price of $0.16 per common share, expires three years from the date of grant and vest six months from the date of the grant.

Keep reading... Show less

A planned business merger between two leading cannabis producers hit a small delay this week as a critical vote got moved.

Meanwhile, a cannabis retail operator elected to celebrate 420 by auctioning a cannabis-themed digital art piece using blockchain technology.

Keep reading... Show less

Partnerships with Minardi Law , Minorities for Medical Marijuana, CultivatED, and the Georgia Justice Project will include clinics and virtual events across Florida , Georgia , and Massachusetts

Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) (“Trulieve” or “the Company”), a leading and top-performing cannabis company based in the United States announced today a series of expungment clinics located throughout south and central Florida as well as virtual events in Georgia and Massachusetts . The clinics are part of the Company’s celebration of the 50 th anniversary of 420.

Keep reading... Show less

Seth Rogen’s New Cannabis Brand are Now Available at Apothecarium Dispensaries in San Francisco , Berkeley and Capitola

The Apothecarium is offering cannabis from Houseplant, the cannabis lifestyle brand founded by Seth Rogen and Evan Goldberg at its five California dispensaries. The Apothecarium has three San Francisco locations (Castro, SOMA and Marina ) and one each in Berkeley and Capitola (outside of Santa Cruz ).

Keep reading... Show less