Canopy Growth Corporation (TSX: WEED) 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.
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