TSX Staff Notice on Marijuana Validates Canopy's
Longstanding Market Strategy to Protect Investors by Conducting
Business Only Where it is Federally Legal to Do So; Should Bring
Clarity and Relief to Investors Seeking to Participate in Listed
and Compliant Cannabis Companies
SMITHS FALLS, ON, Oct. 17, 2017 /CNW/ - Canopy Growth
Corporation (TSX: WEED) ("Canopy Growth" or "the Company") today is
pleased to welcome the Staff Notice issued yesterday by the
Toronto Stock Exchange (the "TSX") confirming that "Issuers with
ongoing business activities that violate U.S. federal law regarding
marijuana are not complying with [listing] Requirements."
Canopy Growth has long advocated that conducting cannabis
activities in the United States
is, in its view, a violation of TSX Listing Obligations. .
In a June 19, 2017 press release,
the Company was clear on its position, stating: "Canopy Growth
can also reassure investors, and in particular its US institutional
investors, that we remain committed to only conducting business in
jurisdictions where it is federally legal to do so. Canopy Growth
believes that operating and investing in markets where such
activity is federally illegal puts the company at risk of
prosecution, puts at risk its ability to operate freely, and
potentially could jeopardize its listing on major exchanges now and
in the future, limiting access to capital from reputable US-based
funds."
This position was reiterated subsequently on August 4, 2017 in a further press release:
"Canopy Growth believes that conducting activities which are
federally illegal, or investing in companies which do, puts the
company at risk of prosecution, puts at risk its ability to operate
freely, and potentially could jeopardize its listing on major
exchanges now and in the future, limiting access to capital from
reputable US-based funds."
While Canopy Growth has a number of partnerships with US-based
companies that may themselves participate in the US cannabis
market, these relationships are licensing relationships that see
intellectual property developed in the
United States brought into Canada, and in no manner involve Canopy Growth
in any US activities respecting cannabis. The Company is confident
that this Staff Notice will have no impact on its operations or
listing on the TSX or the S&P TSX Composite Indexes where
Canopy Growth common shares are listed.
"Today is a step in the right direction by the TSX. We take our
responsibility to our shareholders seriously and as such have
chosen to conduct business in jurisdictions where it is federally
legal to do so," said Bruce Linton,
CEO & Chairman, Canopy Growth. "And it is a good day for the
cannabis sector generally, as this will ensure our sector can
operate with the credibility and professionalism institutional
investors expect of companies listed in Canada"
The Company commends the decisive action taken today and
encourages other regulatory bodies to follow the self-regulatory
step taken by the TSX.
Here's to Future Growth.
About Canopy Growth Corporation
Canopy Growth is a
world-leading diversified cannabis company, offering distinct
brands and curated cannabis varieties in dried, oil and capsule
forms. Through its wholly‑owned subsidiaries, Canopy Growth
operates numerous state-of-the-art production facilities with over
half a million square feet of GMP-certified indoor and greenhouse
production capacity, all to an unparalleled level of quality
assurance procedures and testing. Canopy Growth has established
partnerships with leading sector names in Canada and abroad, with interests and
operations spanning four continents. The Company is proudly
dedicated to educating healthcare practitioners, providing
consistent access to high quality cannabis products, conducting
robust clinical research, and furthering the public's understanding
of cannabis. For more information visit www.canopygrowth.com.
Notice Regarding Forward Looking Information
This news
release contains forward-looking information. Often, but not
always, forward-looking information can be identified by the use of
words such as "plans", "expects" or "does not expect", "is
expected", "estimates", "intends", "anticipates" or "does not
anticipate", or "believes", or variations of such words and phrases
or state that certain actions, events or results "may", "could",
"would", "might" or "will" be taken, occur or be achieved.
Forward-looking information involves known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of Canopy Growth Corporation or its
subsidiaries to be materially different from any future results,
performance or achievements expressed or implied by the
forward-looking information contained in this news release.
Examples of such statements include the impact of the Staff Notice
on the Company and its listing on the TSX or the S&P TSX
Composite Indexes, the impact of the Staff Notice on investors in
the Company and the cannabis sector generally and the Company's
relationships with US-based entities. Risks, uncertainties and
other factors involved with forward-looking information could cause
actual events, results, performance, prospects and opportunities to
differ materially from those expressed or implied by such
forward-looking information, including risks associated with the
TSX's continued listing review of listed issuers in the marijuana
sector; regulatory and stock exchange approvals; and such risks
contained in the Company's annual information form dated
June 28, 2017 and filed with Canadian
securities regulators available on the Company's issuer profile on
SEDAR at www.sedar.com. Although the Company believes that the
assumptions and factors used in preparing the forward-looking
information in this press release are reasonable, undue reliance
should not be placed on such information and no assurance can be
given that such events will occur. The forward-looking information
included in this news release are made as of the date of this news
release and the Company does not undertake an obligation to
publicly update such forward-looking information to reflect new
information, subsequent events or otherwise unless required by
applicable securities legislation.
Neither the TSX nor its Regulation Services Provider (as that
term is defined in policies of the TSX) accepts responsibility for
the adequacy or accuracy of this release.
SOURCE Canopy Growth Corporation