The Canadian Securities Administrators (CSA) have reconfirmed their expectations for Canadian Public Companies that currently own or fund U.S. cannabis operations.
Earlier this year Jeff Sessions, the US Attorney General, rescinded the Cole Memorandum, an Obama era policy that advised the Federal U.S. Government to not interfere with legal cannabis states. In light of this, the CSA is requiring Canadian companies to disclose any and all information on any U.S. based owned cannabis assets.
Louis Morisset, CSA Chair and President and CEO said, “Today’s notice also follows CSA staff’s consideration of the rescission of the Cole Memorandum and our conclusion that a disclosure-based approach remains appropriate in the current circumstances.
The CSA will continue to provide updates into the matter.
Aphria Sells off U.S. Cannabis Assets
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 agreement with 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.