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CryptoCann™ Report: Bitmain faces an IPO obstacle; Ontario to limit number of private dispensaries

The volatility of the crypto market is reportedly making the Hong Kong Stock Exchange hesitant to approve Bitmain’s initial public offering plans

Sign for a dispensary with a cannabis leaf on it
Ontario lawmakers have decided to limit the number of private dispensaries to 25

The Crypto Report

Bitmain, a China-based Bitcoin mining equipment manufacturer, is gearing up for an initial public offering, but the Hong Kong Stock Exchange is hesitant to give the company the green light, as per a CoinDesk report.

Sources told CoinDesk that the 2018 bear market has highlighted the crypto space’s notorious volatility and spooked the exchange.

“The exchange is very hesitant to actually approve these bitcoin mining companies because the industry is so volatile. There’s a real risk that they could just not exist anymore in a year or two,” the source told CoinDesk.

“The HKEX doesn’t want to be the first exchange in the world to approve this and have one die on them.”

READ: CryptoCann™ Report: Scientists look for steady cannabis high; Cryptocurrency exchanges in UK at low risk

Bitmain was one of the first major cryptocurrency start-ups to look to go public, but Canaan Creative and Ebang have thrown their hats in the ring as well.

Regulatory agencies have long been wary of the emerging technology surrounding cryptocurrency.

A survey conducted by The United States Depository Trust and Clearing Corporation found that fintech was thought to be a “systemic risk” to the economy.

Twenty percent of the respondents to the “DTCC Systemic Risk Barometer” pointed to fintech as a risk, a 15% increase compared with last year’s survey results, as per a Cointelegraph report.

“As the industry continues to adopt fintech innovations, like blockchain, AI and cloud solutions, we must ensure that those innovations do not jeopardize the safety and security of the current global financial marketplace,” said Stephen Scharf, DTCC’s managing director and chief security officer.

Scharf said the concern over fintech “highlights the need to evaluate both risks and rewards associated with fintech initiatives.”

The Cann Report

Ontario’s recreational marijuana market may take a hit after provincial lawmakers announced a limit on the number of private dispensaries allowed to open, as per a High Times report.

While the initial plan didn’t include a limit on the number of private dispensaries, lawmakers have now decided to limit the number to 25.

Businesses seeking one of the 25 licenses will be entered into a lottery.

The license winners are expected to be announced in January.

READ: Tidal Royalty cancels letter of intent with CannaRoyalty Corp

Sweet Leaf, one of Colorado’s largest marijuana retailers, had all 26 of its cannabis licenses revoked by the Denver Department of Excise and Licenses following allegations of an illegal multimillion-dollar sales scheme back in July.

The retailer had been accused of “looping”, meaning that customers can buy recreational and medical marijuana multiple times a day.

In October, the owners agreed to pay $2 million in fines, sell its remaining Colorado licenses and steer clear of the state’s cannabis industry for 15 years.

In the latest development, Denver District Judge Edward Bronfin issued an $8.8 million judgment against the owners of the chain for unpaid rent, late fees and interest in breaching four commercial leases in Denver, as per a Marijuana Business Daily report.

Cannabis-focused law firm Greenspoon Marder represented the properties’ landlord, RF Elati.

Rachel Gillette, chair of the firm’s cannabis practice, said in a statement that the goal is to ensure the cannabis industry is viewed as a “normal and trusted part of the corporate world.

 

Contact Lenore Fedow at [email protected]

Follow her on Twitter@LenoreMariee

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