Last October, the Canadian Securities Administrators provided public companies in the sector guidance and general framework for investments, joint ventures, and acquisitions associated with United States cannabis business operations.
From the release by the CSA, “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.”
Pressure from the Canadian Securities Administrators is causing public companies like Aphria Inc. (TSE: APH) to begin to sell off their investments into United States cannabis operations.
Aphria recently announced an agreementwith Liberty Health Sciences Inc. (CSE:LHS) (OTC:LHSIF) to sell its ownership of Copperstate Farms, LLC. and Copperstate Farms Investors, LLC., an Arizona cannabis cultivation, for $20 million US dollars. Changing ownership in the deal is a 340,000 sq. ft. greenhouse cultivation facility, previously owned by Aphria.
At one time, Liberty Health was to act as a holding company for Aphria’s US assets. The most interesting part of this deal however, is that Aphria still owns 35% of Liberty Health, which is traded on a different stock exchange, the CSE, which does not hold the same views on assets held in the US by public Canadian companies. The big question is whether or not Aphria will continue to sell its ownership in Liberty Health