Regulators call on pot industry to improve governance amid financial conflicts

Canadian securities regulators are calling on companies in the cannabis industry to strengthen their governance and disclosure practices to ensure investors are aware of potential conflicts of interest for executives and directors relating to M&A activity. The staff notice issued Tuesday [PDF] by the Canadian Securities Administrators, an umbrella organization for provincial securities regulators, attempts to address a “higher-than-usual crossover” of potential conflicts of interest, such as overlapping debt and equity, in the sector’s M&A transactions over the past several years. The notice details how CSA staff have identified some deals where either the acquirer or acquiree had an undisclosed financial interest in the other entity, something that is deemed “material information” for investors. Other examples in need of improvement are when cannabis company executives or directors may have potential conflicts of interest that include personal or business relationships with other directors that could compromise their independence.

Oh yes im sure they will self regulate themselves lmao

The most over regulated industry ever on the face of this planet. Legal prostitution (where available), alcohol, cigarettes, gambling are all less regulated. I was blown away when I helped my buddy plan his facility in Las Vegas, the rules they have there are way over the top strict.