CSA publishes guidance on disclosure for cannabis issuers

CSA has published a notice with guidance on disclosure expectations for cannabis issuers. The guidance is the result of the regulator’s disclosure review of 70 cannabis issuers, which revealed deficiencies.

“Given the significant growth and interest in the cannabis industry, it is imperative that investors be provided with transparent information about issuers’ financial performance and risks related to their operations,” says Louis Morisset, CSA chair, and president and CEO of the Autorité des marches financiers, in a release.

Key areas where disclosure improvements are required include financial statements and management’s discussion and analysis, specifically concerning fair-value disclosures. Improvements could also be made to forward-looking information and balanced disclosure, and risks related to U.S. operations.

Where deficient disclosure was identified during CSA’s review, issuers either committed to improvements or, when the deficiencies were pervasive, certain documents were refiled, says the notice.

CSA will continue to monitor and assess disclosure practices in the cannabis industry in its continuous disclosure and prospectus review programs, the release says.

For full details, read CSA’s notice on disclosure expectations in the cannabis industry.

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