Nutritional High Applauds the Guidance From Canadian Securities Regulators Regarding US-Focused Cannabis Issuers; Pleased That TSX Rules Keep Canadian LPs on the US Sidelines (For Now)
TORONTO, Oct. 17, 2017 (GLOBE NEWSWIRE) — Nutritional High International Inc. (the “Company” or “Nutritional High“) (CSE:EAT) (OTCQB:SPLIF) (FRANKFURT:2NU) wishes to comment on the recent guidance provided by Canadian Securities Administrators (“CSA“) with respect to their stance on the cannabis issuers focused on the legal cannabis market in the United States.
On October 16, 2017, the CSA has issued Staff Notice 51-352 – Issuers with US Marijuana-Related Activities (“Staff Notice“), which provides guidance for Canadian issuers with operations or investments in the US States which have legalized cannabis for medical or adult recreational use. The Staff Notice sets out the disclosure expectation for issuers, and clarification of the jurisdiction that stock exchanges have with respect to listings.
As the first US-focused cannabis company to complete an initial public offering in Canada, Nutritional High wishes to commend the regulators on providing the guidance. We believe that robust disclosure is an essential pillar of maintaining the integrity of capital markets, which is important in any highly regulated sector. US Cannabis laws are very complex and providing adequate disclosure of the legal framework in full, true and plain disclosure in a form that’s understandable to both retail and institutional investor communities is critical to reaffirming the investor confidence.
Jim Frazier, CEO of the Company commented: “Nutritional High’s management team is committed to taking every precaution to meet these requirements and ensure that investors are always taking informed risks when investing in our Company. We believe that the approach that the Canadian capital market participants have taken has allowed Canada to become the largest source of capital for cannabis issuers in the world, and we applaud the regulators for taking a proactive approach in this regard.”
The Company also wishes to comment on Sections 306 and 325 of the TSX Company Manual, which effectively prohibits cannabis issuers with US operations to list on the TSX or TSXV. Nutritional High is listed on the Canadian Securities Exchange (the “CSE“), which is not affected by this policy as to our knowledge, the CSE has no such restriction. The CSE requires issuers to provide robust disclosure of the legal frameworks and risks, which is in line with Nutritional High’s philosophy.
David Posner, Chairman of the Company further comments: “While the Canadian Licensed Producers will eventually come to the US, the TSX position allows us to continue to penetrate the market and keep a cap on valuations for now. We welcome this clarity from both the CSA and the TSX, and will continue to aggressively tackle the US, Canadian and international markets.”