You’re a federal prosecutor. An FBI agent comes into your office and tells you that he has conclusive evidence that a U.S. company has invested $25 million in a foreign drug cartel that manufactures and sells heroin in that foreign country and beyond. Is there any doubt that you, as the prosecutor, take that case? Probably not. But take that same scenario and change that drug cartel to a Canadian company that manufactures and sells cannabis in full compliance with Canadian law. Do you still take the case? The answer for now appears to be likely not.
There are at least two questions that should come to the mind of any U.S. executive considering an investment in a foreign cannabis company: is it illegal? and would the federal government likely be interested in bringing criminal charges?