A Canadian regulator told weed companies this week to get better at offering conflict of interest disclosures relating to mergers and acquisitions.
The Canadian Securities Administrators said that its staff had observed “instances of inadequate transparency relating to the cross-ownership of financial interests”among public marijuana companies, executives and board members. The association of provincial regulators also said staff at the various regulators under its umbrella had observed “recent examples” where “corporate governance related disclosures were deficient.”
“As the market has expanded, many cannabis issuers and their directors and executive officers have participated in the financing of other cannabis issuers, resulting in higher than usual crossover of financial interests,” said the CSA. These may include overlapping debt and equity, or other business relationships.csa_20191112_51-359_reporting-issuers-in-the-cannabis-industry