Photo via iStock/ stellalevi
Though cannabis might be all the buzz these days — especially in Israel, where the government has allowed research on medical marijuana since the 1960s — Israeli authorities are exercising a great deal of caution when it comes to including cannabis businesses on the national stock exchange.
An article published on the Israeli news site Calcalist described the Israel Security Authority (ISA) — a chief financial regulator in the country — as having “cold feet” following a wave of excitement after shares of cannabis companies on the Tel Aviv Stock Exchange (TASE) jumped hundreds of percentage points in a relatively brief period. Despite false rumors to the contrary, the ISA hasn’t excluded cannabis companies outright. Rather cannabis firms, like cryptocurrency companies (which have also recently drawn the attention of Israeli regulators, according to Calcalist), are “regularly and constantly examined,” explains Offir Eyal, senior advisor to the ISA’s chairwoman and director of its international affairs department.
Stock valuation and growth of Israeli cannabis companies; chart via Calcallist.
But the ISA itself doesn’t choose which companies will make it to public indices — that’s up to the Tel Aviv Stock Exchange. “[The ISA] can direct TASE to exclude some sort of companies from the indices (as was done recently regarding crypto companies), but beside that TASE runs the show,”