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“Not being able to participate in the U.S. cannabis market for TSX-V and TSX listed issuers is a disadvantage, and really kind of hinders of the growth of our market and also erodes our leadership position on a global basis,” Hugo Alves, chief executive of TSX Venture-listed Cannabis Wheaton Income Corp., told a meeting of the Canadian Club of Toronto on Monday.

Canadian capital markets have become a linchpin in the global cannabis industry, and the country’s large and well-capitalized public companies are quickly expanding into medical marijuana markets around the world. Because most of them are listed on the TSX or TSX Venture, however, they’re effectively stopped at the southern border.

Even though many U.S. states have developed medical and recreational markets, cannabis remains federally illegal, and the U.S. Department of Justice recently rescinded an order limiting federal enforcement of cannabis laws. “From our perspective, at the intersection of federal law and state law in this matter in the U.S., federal law has jurisdiction,” TMX spokesperson Shane Quinn said.

Despite the risks, not being able to operate in the United States means foregoing significant opportunities, said George Scorsis, chief executive of Liberty Health Sciences Inc., who sat on the Canadian Club panel with Alves, Tilray CEO Brendan Kennedy and Beacon Securities Ltd. analyst Vahan Ajamian.

“We’re seeing 29 states that currently have medical programs in place. Over the next year we’re going to see another nine bills that are going to be passed. That’s a fundamental shift in the behaviour, the ideology, the beliefs of the average American,” he said.