TMX, operator of the Toronto Stock Exchange, scored a coup of sorts last week when Boulder, Colo.-based Charlotte’s Web Holdings said it will delist from the Canadian Securities Exchange and list on the TSX.
This marks the first U.S.-based cannabis company to trade on the main Canadian bourse, which has prohibited listings from companies that are breaking the law where they operate. Cannabis remains federally illegal in the U.S., but Charlotte’s Web makes hemp-derived CBD products, which were legalized south of the border with the passage of the farm bill in December.
The Charlotte’s Web listing is likely to be the first of several, said Loui Anastasopoulos, TMX’s president of capital formation for equity markets.
“We have a healthy pipeline of CBD and hemp companies,” Anastasopoulos said in a phone interview. “We’ve been speaking to them for quite a long time, even before the passage of the bill, in