NASDAQ objects to Canopy Growth’s plans putting the Smiths Falls company’s plans at risk

Smiths Falls-based Canopy Growth says a US holding company it wants to create could be delisted from the NASDAQ Stock Exchange throwing a pretty big wrench in the works.

The company reports that the NASDAQ has objected to Canopy consolidating U.S. financial results if and when it closes its deals to acquire Wana, Jetty or the fixed shares of Acreage. All are U.S. based.

The plan was for the Canadian pot pioneer to create a holding company called Canopy USA, where its investment south of the border would collect.

In a proxy filing from Canopy, the comapny says its Nasdaq and TSX listings prohibit it from investing in businesses in U.S. cannabis companies until laws change south of the border, or until it lists on an alternative exchange that allows these kind of purchases.

Canopy also says it understands the views put forth by NASDAQ, but also believed its complying with all laws and regulations. They plan to work with NASDAQ to ensure they remain compliant.