Pot companies failing at financial reporting, regulator says
There are now more than 135 publicly traded cannabis companies in Canada, with a combined market value of more than $46 billion
Wednesday, October 10, 2018
Cannabis companies are failing to adequately disclose even basic financial information to shareholders — from cost of production to fair value assessments, according to Canadian regulators. Of 70 companies reviewed, every single one fell short on disclosure requirements, often not providing enough information in their statements and management discussion for an investor to understand their financial performance, the Canadian Securities Administrators said. The CSA warning comes years after pot companies began listing on the country’s exchanges and just days before Canada legalizes marijuana for recreational use on Oct. 17. Valuations of many pot companies have soared, though the stocks are often volatile. (See also: Why the weed stock boom is about to bust)
