Medical cannabis, Bitcoin and ICOs

Corporate News - 23 November 2017

ASX has advised that it has noticed an increase in the number of enquiries about listing medical cannabis businesses and businesses investing in, or making initial coin offerings (ICOs) of, bitcoins or other crypto-currencies.

Importantly, ASX notes that the legal status of medical cannabis businesses in the US presently is subject to uncertainty under US federal law. As such, it has advised that an applicant seeking to list a US medical cannabis business will need to satisfy ASX that its business can be lawfully carried on in the US (under both Federal and State law) before ASX will admit it to the official list. ASX will generally expect this to be confirmed in a legal opinion from a reputable US law firm and for the opinion to be included in the applicant’s IPO prospectus.

ASX also notes that an applicant seeking to list a business investing in, or making ICOs of, bitcoins or other crypto-currencies will need to satisfy ASX that its business is bona fide, that it has a structure and operations that are appropriate for a listed entity, that it will comply with all applicable legal requirements in Australia and in all jurisdictions where it is proposes to carry on business, and that proper disclosure has been made to investors of the risks (including emerging regulatory risks) involved.

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