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Overall health Canada is investigating whether or not Hexo Corp.’s Snapchat advertisements violate the Cannabis Act.
Snap Inc. and Twitter Inc. are gambling that they can profit off the developing marijuana sector by operating advertisements for cannabis merchandise from licensed Canadian producers, testing restrictive laws in Canada on advertising weed.
Regulators in Canada declined to comment on an ongoing investigation into advertisements Hexo Corp. ran on Snapchat, the app run by Snap Inc. SNAP, +two.10%.
Each Snap and Twitter TWTR, +1.83% have published advertisements for some of the biggest marijuana businesses in Canada such as Aurora Cannabis Inc.ACB, +eight.21% , ACB, +7.84% and Hexo, who promote brands, health-related pot and other merchandise on the social networks, according to screenshots of advertisements obtained by MarketWatch. As the Toronto Raptors fought their way to the National Basketball Association championship, Hexo even went as far as sponsoring a Snapchat filter for customers at a playoff game in Toronto.
Smaller sized rivals such as Zenabis International Inc. ZENA, +7.69% have also been interested in marketing on social platforms. Zenabis was 1 of the initially businesses that participated in Twitter’s beta tests for the ad platform, according to Mandeep Khara, Zenabis’ chief advertising officer.
Published: July 31, 2019