Cannabis companies are looking for a market where their legitimate peers are trading and that happens to be Canada
“If you go to the OTC pink sheets in the U.S. there’s probably over 100 names, but a lot of those are pretty sketchy,” says Malik. “So (cannabis companies) are looking for a market where their legitimate peers are trading and that happens to be Canada.”
However, Braden Perry, a lawyer who specializes in government compliance, says even investing in Canadian cannabis firms could spell trouble for American funds.
“If you have U.S. money invested in a product that is illegal in the United States, repatriating that money could be considered a money laundering violation,” said Perry, a partner in Kansas City-based law firm Kennyhertz Perry, LLC.
However, Perry adds that the issue is a complicated one.
“I don’t want to be accusing people of breaking the law when I don’t know exactly what they’re doing.”
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