TD Bank adds 16 more cannabis stocks to approved list

The Toronto-Dominion Bank Becomes More Comfortable With the Cannabis Industry

The Bank made an unusual decision in April to restrict the way its investment advisors could talk to clients about this flourishing industry. pot stocks. At the time, TD stated that it has approved Canopy Growth Corp., Emerald Health Therapeutics Inc. and Emblem Corp. because they have no exposure to the United States, where the drug is banned under federal law but legal in some cases. United States.

TD examined space and now adds 16 other cannabis companies to its approved stock list, including Cronos Group Inc. and CannTrust Holdings Inc., according to a June 27 email sent to advisors . Five of these companies are listed on the Toronto Stock Exchange and 11 are listed on the TSX Venture Exchange

To Be Listed on TD's Solicitation List , an issuer must be registered TD spokesman Paolo Pasquini said: [TRADUCTION] In 1965, TMX Group Ltd., the largest stock market operator in Canada, clarified its policy at the time. with respect to TSX or TSXV. prevent any cannabis company that violates US federal law from being listed on the Toronto Stock Exchange or the TSX Venture Exchange. The markets have reviewed their issuers, forcing those who break the policy to dump US badets to keep their listings. TMX has more than two dozen securities listed on the TSX and TSXV, including Aurora Cannabis Inc. and Aphria Inc.

However, advisors to TD's Private Investment Management (PIA) network are still not allowed to recommend Aurora and Aphria shares, two of Canada's largest cannabis growers, and the four Canadian Marijuana Exchange Traded Funds (ETFs).

Aurora said in June that she was setting aside her US badets and was seeking the listing of Australis Capital Inc. on the Canadian Stock Exchange, where tougher rules in terms The listing on the Toronto Stock Exchange has allowed many pot companies to be home. Australis owns land in the state of Washington, where cannabis is legal for medical and recreational use, and has an interest in a Michigan company that has asked the state to become a licensed medical producer.

Aphria began to dispose of his US holdings, giving up his interest in an Arizona producer in February and selling a quarter of his stake in Liberty Health Sciences Inc. in Florida. The rest of his Liberty shares are held in escrow. will be sold to the same buyers once the lock-up period is over and that they will become free trade transactions.

The largest Canadian ETF – Horizons Marijuana Life Sciences Index (HMMJ) – has over $ 796 million in badets under management and aims to track the North American Marijuana Index. HMMJ includes only 40 of the 49 stocks (including Aurora and Aphria) as it does not include companies primarily focused on the medical or recreational marijuana market in the United States. Despite the fact that the fund lists this constraint, it does not appear on TD's list of recommendations

TD would not answer specific questions about the approval process of its list, but Mr. Pasquini said the cannabis industry is complex and evolving rapidly. As a result, TD has policies in place to manage the advice we provide to clients regarding investments in companies in this industry. Our latest update reflects our ongoing badessment of this emerging market. We expect our opinions to continue to evolve and grow with the industry.

TD Wealth PIA serves clients with over $ 750,000 in investable badets. The unit has more than 740 advisers, of whom 200 are discretionary portfolio managers, which means that their clients defer to them individual investment decisions.

If a PIA client tells his advisor to buy shares in a marijuana business or an ETF, the advisor is allowed to trade. But if a client says that he is interested in the marijuana industry as a possible investment, a TD advisor can only recommend a stock that has been added to the approved list.

Last month, Parliament lifted the 95-year ban on cannabis and regulated the non-medical use of drugs, releasing millions of adults to consume marijuana when the The law will enter into force on 17 October.

Like any emerging sector, investments in legal marijuana companies are risky. Most companies are startups and have little or no revenue. Still, many investors are optimistic about their prospects, pouring millions into the sector despite many unknowns – all in the hope of taking advantage of the green rush as countries around the world legalize and regulate cannabis.

shares approved by TD:

Canopy Growth Corp. -WEED

Emblem Corp. -EMC

Emerald Health Therapeutics -EMH

Cronos Group Inc. -CRON

Naturally Splendid Ent Ltd. -NSP

Weedmd Inc. – ADM

Tetra Bio-Pharma Inc. -TBP

Supreme Cannabis Co. Inc. -FIRE

Medreleaf Corp. -LEAF

Hydropothecary Corp.-HEXO

Abcann Global Corp. -ABCN

Newstrike Resources Ltd. -HIP

ICC Labs Inc. -ICC

Harvest of Cannabis Inc. -HVT

Delta 9 Cannabis Inc. -NINE

National Access Cannabis Corp. -META

CBD Med Research Corp. -CBM / H

Neptune Technologies & Bioress -NEPT

Canntrust Holdings Inc. -TRST