The Canadian Securities Exchange (CSE) continues its steady increase in the cannabis market thanks to growing number of companies the space.

In an exclusive interview with the Investing News Network (INN) Richard Carleton, CEO of the CSE, said the exchange is currently eyeing about 140 applications to list on the exchange with 60 percent of those being marijuana related.


“That’s essentially a whole year’s worth of business at this point,” Carleton told INN following his panel at the Arcview Investor Forum in Las Vegas on November 13.

 

Cannabis - Will The Fortune 500 Join The Party?

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

The exchange has increased its presence in the cannabis space thanks to the decision from the TMX Group exchanges not allowing US operations or activities to its listings.

When the first US-focussed cannabis company to approach the CSE explained the difficulties it faced listing on those exchanges, Carleton told the audience he didn’t see the big issue.

“We said ‘will your law firm provide an opinion that you are operating a business in accordance with applicable law?’ They said ‘yes,’ we said ‘fine you’re in.’ Seemed pretty straightforward. Not a hard question,” Carleton added.

This regulation difference has effectively made it so any company looking to raise capital and be involved in the US cannabis market will head to the CSE.

Canadian investors have proven to have an appetite for these stocks and have seized the opportunity in gaining exposure to the fractured US market.

However, the CSE has still faced challenges as explained by Carleton during his panel at the Arcview forum. Carleton said during his talk:

For those of you who are Canadian policy-wonks you may understand that the Canadian clearing and settlement organization, which is owned by our biggest competitor, tried to squeeze us out of the market by refusing to provide clearing and settlement services for cannabis issuers stocks. We managed to squelch that but again, we’ve been fighting.

The executive told the audience the CSE has 52 US-related current cannabis listings and had been able to raise C$1.5 billion for US cannabis companies throughout the year to the month of October.

The executive added that figure would be outdated by the end of the week as more US-related players seek listings on the exchange.

 

Cannabis - Will The Fortune 500 Join The Party?

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

Could CSE be facing competition for US cannabis company listings soon?

During a panel at the MJBizCon in Las Vegas Kevin Murphy, CEO of the soon to be CSE listed company Acreage Holdings, said US companies elect to raise capital in Canada due to the current regulation on a federal level.

“Canadians are leading the capitals market race,” the cannabis executive told the audience.

Murphy added he would have been honored to launch on the New York Stock Exchange (NYSE) or NASDAQ but is forced to go on the CSE for now.

He expects companies in the US to start launching on US exchanges if the “states act,” a bill looking to remove the cannabis federal ban at the state level, is passed.

When asked about the possibility for this migration of existing or soon to launch companies from the CSE, Carleton told INN the exchange is focussed on the smaller scale companies.

“A lot of the companies that we’re talking to, yes, they are bigger and some of them are actually at that stage now [ready to launch on the NYSE or NASDAQ]. But, a lot of them are significantly smaller than that. They need to raise additional growth capital to get to that level,” the executive said.

“Is there a competitive threat coming at some point? That will be a good problem to have.”

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.

 

Cannabis - Will The Fortune 500 Join The Party?

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

One major cannabis analyst gave her top stock pick this week as industry attention continues to converge on the path ahead for the US market.

Also this week, the CEO of Aphria (NASDAQ:APHA,TSX:APHA) gave an update on a critical merger and spoke about who holds the edge in the US in terms of American and Canadian cannabis operators.

Keep reading... Show less

Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) (“Cronos Group” or the “Company”) will hold its 2021 First Quarter Earnings Conference Call on Friday, May 7, 2021 at 8:30 a.m. EDT. Cronos Group’s senior management team will discuss the Company’s financial results and will be available for questions from the investment community after prepared remarks.

A live audio webcast of the earnings call will be available on the Company’s website at https://ir.thecronosgroup.com/events-presentations . The webcast of the call will be archived for replay on the Company’s website.

Keep reading... Show less

An Emerging Markets Sponsored Commentary

A report just released in early April confirms that the cannabis beverage sector is thriving. According to this report from industry stalwart, Marijuana Business Daily while sales for vapes, pre-rolls and flower were lackluster, cannabis beverages shined:

Keep reading... Show less

BevCanna Enterprises (CSE:BEV,OTCQQ:BVNNF,FWB:7BC) CEO Marcello Leone shared how the company is scaling up its products to forge partnerships and explore opportunities across Canada, the US and Western Europe. 

“Getting your standard processing license and being fully compliant at a federal level is critical in Canada, and we were successful in getting that done. Now we’re getting ready to launch our Keef line of beverages within the next 45 days,” Leone said. 

As a young company, Leone said BevCanna has only started, but it took a four-pronged approach to make sure that it is a revenue-generating company prepared for the opening of many jurisdictions for CBD-based products.

“We are blessed that we have a beautiful infrastructure of our own, a state-of-the-art bottling facility with a capacity of almost 200 million bottles per annum and a strong balance sheet of $55 million. We are in a strong position to scale and grow this company.”

BevCanna has received a Standard Processing License from Health Canada and is now fully authorized to begin production at its full-service, high-capacity beverage manufacturing facility. The company will begin production of its white-label products, number one US cannabis beverage brand Keef and its in-house beverages through licensed Canadian retailers, positioning the company to fully capitalize on the burgeoning Canadian cannabis-infused beverage sector.

Watch the full interview with CEO Marcello Leone above.

Keep reading... Show less

BioHarvest Sciences (CSE: BHSC) will be presenting at the Benzinga Cleantech Small Cap Conference taking place on April 22, 2021. We invite our shareholders and all interested parties to explore cleantech small cap investment opportunities through two days of networking, dealmaking and discovery.

Sign up to get a free spectator pass for the event: https://www.benzinga.com/events/small-cap/clean-tech/

Keep reading... Show less