LEAMINGTON, ON, Oct. 17, 2017 /CNW/ - Aphria Inc.
("Aphria" or the "Company") (TSX: APH or USOTCQB:
APHQF) responded today to both the Canadian Securities
Administrators ("CSA") Staff Notice 51-352 – Issuers with
U.S. Marijuana-Related Activities and the Toronto Stock
Exchange ("TSX") guidance on Section 306, Section 325 and
Part VII of the TSX Company Manual, issued on October 16, 2017.
Commentary on CSA Staff Notice
Vic Neufeld, Chief Executive
Officer of Aphria, commented: "We believe the new CSA staff notice
provides a very balanced framework for the Canadian capital markets
and we welcome the additional guidance on specific and enhanced
disclosure requirements for U.S. marijuana-related activities as
they pertain to the medical marijuana industry in Canada."
"We are on record as seeking greater securities regulatory
guidance for the medical marijuana industry in Canada and we believe the new disclosure
framework including related risks will provide greater investor
protection and increased credibility to our industry."
The new CSA Staff Notice 51-352 specifically states that: "Our
disclosure-based approach is premised on the assumption that
marijuana-related activities are conducted in compliance with the
current laws and regulations of a U.S. state where such activities
are legal, and the understanding that a U.S. federal government
forbearance approach to the enforcement of federal laws remains in
place. As a result, disclosure about how a U.S. Marijuana
Issuer ensures compliance with state level regulatory frameworks
forms an important part of our disclosure expectations."
Neufeld continued: "We at Aphria and at our joint venture
partner, Liberty Health Sciences Inc., believe this approach to
disclosure for medical marijuana companies in Canada is truly representative of the existing
U.S. legislative, regulatory and political environment."
Commentary on TSX Staff Notice
"In contrast, we believe the TSX's recent staff guidance
concerning the minimum listing requirements to applicants and
listed issuers in the marijuana sector does not properly apportion
the weight and context that must be applied to the current split
between U.S. Federal and state laws governing medical cannabis. For
example, while medical cannabis is technically covered by Schedule
I of Controlled Substances Act, it is presently medically legal in
31 U.S. states and/or territories and Congress has not appropriated
any funds to a federal agency for either civil or criminal
enforcement prosecutions against state licensed medical marijuana
operators and has instead enacted legislation that prohibits the
U.S. Department of Justice from utilizing any federally
appropriated funds to carry out criminal or civil actions
against state licensed medical cannabis operators."
"The TSX staff notice is extremely broad in its application and
it is difficult to determine what, if any, impact it could have on
Aphria or its business at this time. The objective application of
such staff notice by the TSX to any entity engaging in activities
related to the cultivation, distribution or possession of marijuana
in the U.S. or entities engaging in ancillary services activities
may prove to be challenging in determining actual compliance with
such guidance."
"As disclosed in August of this year, Aphria's common shares
have traded on the TSX and previously the TSX Venture Exchange for
almost three years during which time the Company has raised over
$216 million from investors by way of
five offerings by short form prospectus. Aphria has had marijuana
related activities in the U.S. since 2015, including its
Copperstate transaction, which was approved by the TSX Venture
Exchange prior to its closing."
"Canada remains a global leader
in the cultivation, harvesting and distribution of medical
marijuana. We believe the existing national framework for marijuana
regulation in Canada, together
with the new disclosure framework introduced in the recent CSA
staff notice, will ensure that Canada remains at the forefront of this
emerging industry," said Neufeld.
We have a Good Thing Growing.
About Aphria
Aphria Inc., one of Canada's
lowest cost producers, produces, supplies and sells medical
cannabis. Located in Leamington,
Ontario, the greenhouse capital of Canada. Aphria is truly powered by sunlight,
allowing for the most natural growing conditions available. We are
committed to providing pharma-grade medical cannabis, superior
patient care while balancing patient economics and returns to
shareholders. We are the first public licensed producer to report
positive cash flow from operations and the first to report positive
earnings in consecutive quarters.
For more information, visit www.Aphria.com.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: Certain
information in this news release constitutes forward-looking
statements under applicable securities laws. Any statements that
are contained in this news release that are not statements of
historical fact may be deemed to be forward-looking statements.
Forward looking statements are often identified by terms such as
"may", "should", "anticipate", "expect", "potential", "believe",
"intend" or the negative of these terms and similar expressions.
Forward-looking statements in this news release include, but are
not limited to, statements with respect to internal expectations,
any commentary related to the legalization of marijuana and the
timing related thereto, statements related to the effect and
consequences of certain regulatory initiatives and related
announcements, and the impact thereof for shareholders, industry
participants and other stakeholders. Forward-looking statements
necessarily involve known and unknown risks, including, without
limitation, risks associated with general economic conditions;
adverse industry events; marketing costs; loss of markets; future
legislative and regulatory developments involving medical
marijuana; inability to access sufficient capital from internal and
external sources, and/or inability to access sufficient capital on
favourable terms; the medical marijuana industry in Canada generally, income tax and regulatory
matters; the ability of Aphria to implement its business
strategies; competition; crop failure; currency and interest rate
fluctuations and other risks.
Readers are cautioned that the foregoing list is not exhaustive.
Readers are further cautioned not to place undue reliance on
forward-looking statements as there can be no assurance that the
plans, intentions or expectations upon which they are placed will
occur. Such information, although considered reasonable by
management at the time of preparation, may prove to be incorrect
and actual results may differ materially from those
anticipated.
Forward-looking statements contained in this news release are
expressly qualified by this cautionary statement.
SOURCE Aphria Inc.