August 07, 2019
Partner Cheryl Reicin has sent a warning signal to non-U.S. companies of the challenges they might face when wanting to list in the U.S, saying the SEC’s Enforcement division is “very robust”.
Speaking with The Globe and Mail in an article that follows the announcement of the investigations into CannTrust after the company revealed it illegally grew cannabis that had not yet been properly licensed, Cheryl compared the investigative approach of the SEC to that of the OSC. Cheryl has previously spoken to the Globe on this issue.
“The approach of the SEC traditionally is much more aggressive. I mean, people go to jail. Remember Martha Stewart? She went to jail for much less than what’s being alleged here,” Cheryl said.
“Everyone wants to run to the U.S., but we do warm companies, ‘They don’t mess around in the U.S., the [Securities and Exchange Commission] Enforcement division there is very serious and very robust, and when you list in the US., you agree to the jurisdiction in the U.S.”
Cheryl mentioned the higher level of U.S. trading volume might be a reason as to why the SEC would want to take a significant role into the investigation of CannTrust.
“I think the OSC and the SEC will probably have to work together on this,” Cheryl said.
For more on Torys’ Cannabis work, visit the practice page.