On Tuesday (February 27) a public cannabis company with assets in the US decided to switch public exchanges in order to maintain those interests and avoid getting delisted by the TSX Venture.

Maple Leaf Green World (TSXV:MGW) decided it was more important to maintain its operations in the US by voluntary delisting from the TSXV and moving its common shares to the Aequitas NEO Exchange–the same exchange that offers one of the most recent marijuana exchange-traded fund (ETF).


The company was signaled by the TSXV for holding interests in cannabis operations below the Canadian border, where uncertainty rules the regulatory landscape as the drug remains illegal at the federal level. However, several states have introduced legislation policies for marijuana.

Dale Shirley, investor relations for Maple Leaf Green World, told the Investing News Network (INN) he had been responding to calls all morning from curious investors wanting clarification on what the exchange situation means for the company and their shares.

“The US part of our operations is a big piece of the company, so divesting it really was not an option and being delisted would not go over too well with the shareholders,” Shirley said.

US Election 2020 and Cannabis

 
Investing in cannabis? Read what experts have to say about cannabis and the US Election!
 

TSXV requested Maple Leaf to dump US assets or face delisting

“TSX and TSXV provided clarity regarding the application of our requirements for applicants and existing listed issuers in the marijuana sector in the TSX staff notice and TSXV bulletin issued in October 2017,” a TMX spokesperson told INN. “We continue to welcome qualified applicants in all sectors who are operating in compliance with our exchanges’ requirements, including marijuana companies that operate within Canada and comply with applicable Canadian law.”

In February the company revealed the TSXV exchange sent a notice challenging the validity of the company’s listing because of its assets in Nevada. Maple Leaf contended since the production of cannabis had not yet begun and said that its shares still belonged on the exchange.

The TSXV asked the company to divest the asset or transfer its shares into another exchange that would allow that business.

“[Maple Leaf] is of the view that it is currently in compliance with the Exchange Bulletin and has made a submission to the TSXV clarifying the state of its current operations in the United States,” the company wrote on February 6.

As part of Tuesday’s announcement the company said the NEO exchange offers “an innovative trading venue and a value added listing venue for capital raising companies and investment products.”

Maple Leaf expects the exchange switch to take place by the end of March pending meeting the conditions from both exchanges.

A representative from NEO told INN the exchange confirmed the information shared by Maple Leaf. However, it could not provide any other comments at this stage of the process.

Last year Aphria (TSX:APH; OTC:APHQF) held a similar dispute with the exchange for their interest in the US by having a stake in an Arizona producer and Liberty Health Sciences (CSE:LHS), a Canadian company operating cannabis businesses in the US.

After months of back and forth between the company and the TMX Group, Aphria finally announced it would dump its US assets.

Investor Takeaway

Maple Leaf closed Monday’s (February 26) trading period with a share price of $0.94. By Tuesday the stock was losing value early. As of 11:00 a.m. EST, the company’s share price dropped to $0.75, the lowest value the stock has seen this year.

That said, so far this year, Maple Leaf’s shareholders have seen positive returns, with an 8 percent increase year-to-date. By the closing time in the public markets, the share price for Maple Leaf had decreased 13.83 percent since Tuesday’s open representing a loss of $0.13 per share.

Update

In an attempt to clear the situation for its shareholders, Maple Leaf issued a statement on Wednesday (February 28) to clarify its reasoning for leaving the TSXV.

“In management of the company’s view, the NEO Exchange has an exceptional focus on understanding and helping meet the needs of public companies,” Maple Leaf said.

The company called the switch in exchanges an important milestone for its progress. According to Maple Leaf, the NEO has a simple value proposition for them that attracted them.

“As a company deeply entrenched in the North American cannabis sector, it was important for management of the Company to select to partner with an exchange that has clear views on where it stands in relation to the industry,” Maple Leaf explained.

Early on Wednesday, the company has seen a bounceback for its share price. As of 12:30 p.m. EST Maple Leaf’s stock has gone up 2.47 percent since the markets opened, returning its price per share back to $0.83 cents.

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.

Editor’s Note: This article was updated on February 28 to include new information provided by Maple Leaf Green World.

Editorial Disclosure: Maple Leaf Green World is a client of the Investing News Network. This article is not paid-for content.

Achievements with Scalability and Compatibility Pave Way for Next Phase of Advancement

Codebase Ventures Inc. (“Codebase” or the “Company”) (CSE:CODE)(FSE:C5B)(OTCQB:BKLLF) is excited to announce that the Company’s holding, Arcology, a cluster-computing powered AI blockchain ecosystem with unlimited scalability, has updated its working roadmap in response to its Testnet 1.0 results

Keep reading... Show less

For the purposes of the Financial Conduct Authority’s Disclosure Guidance and Transparency Rules, World High Life announces that the Company has 230,119,819 ordinary shares of 1p each in issue (“Ordinary Shares”), each share carrying the right to one vote. The figure of 230,119,819 should be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the Financial Conduct Authority’s Disclosure Guidance and Transparency Rules

The Directors of the Company accept responsibility for the contents of this announcement.

Keep reading... Show less

TransCanna Holdings Inc. (CSE: TCAN) (FSE: TH8) (“TransCanna” or the “Company”) announces that it has granted an aggregate of 400,000 options at an exercise price of CDN$1.00, exercisable for a period of five years, to directors and officers of the Company. The stock options are being granted pursuant to the terms of the Company’s stock option plan, and are subject to regulatory approval.

About TransCanna Holdings Inc.

Keep reading... Show less

Donation will benefit veteran-focused organizations and nonprofits, including all TruVet Program partners

Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) (“Trulieve” or “the Company”), a United States -based leading medical cannabis company, announced today a donation for all TruVet Program partners year-to-date in honor of Veterans Day. A total of $15,000 representing a portion of the November proceeds from the Company’s limited-edition Freedom Pre-Roll product, will be shared among program partners, which are veteran-focused organizations andor nonprofits.

Keep reading... Show less

Bronstein, Gewirtz & Grossman, LLC notifies investors that a class action lawsuit has been filed against Aurora Cannibas, Inc. (“Aurora” or the “Company”) (NYSE:ACB) and certain of its officers, on behalf of shareholders who purchased or otherwise acquired Aurora securities between February 13, 2020, and September 4, 2020, inclusive (the “Class Period”). Such investors are encouraged to join this case by visiting the firm’s site: www.bgandg.comacb

This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934.

Keep reading... Show less