RE:RE:CopperstateMike, Full credit to GoBlue for alerting me to this. I always thought the TMX would attack the LHS Inc. transaction based on Aphria holding shares "indirectly" in LHS Ltd. which is the company doing business in the US. Not so quick. The distinction between Copperstate and Liberty is that Aphria holds shares directly in Copperstate (this is an issue with TMX), while Aphria's Florida interest is held indirectly through LHS Inc. With Florida operation, Aphria has no direct holdings of the Florida company (LHS Ltd.). Aphria owns shares in LHS Inc. which is listed on the CSE. In turn LHS Inc. owns the Florida operation. The CSA, OSC and CSE have all agreed that companies listed on the CSE can do business in the US so long as they comply with "enhanced disclosure". By owning shares of a CSE listed company Aphria may well be onside with TMX regulators. Fully legal for Aphria to hold share in CSE listed companies. By transferring ownership in Copperstate to LHS Inc., Aphria is no longer in violation of TMX policy because they now would only hold shares in a Canadian listed company that is in full compliance with CSA, OSC and CSE. Its all legal in Canada. Make's Aphria's argument with TMX even stronger. Illegality of marijuana at the Federal level in the US is a non issue, as far as CSA, OSC and CSE are concerned. There is still an issue with Aphria transferring their Copperstate interest to LHS Inc., but this has more to do with getting the consent of all Copperstate partners and nothing to do with TMX. Most likely a shareholders agreement in place between Copperstate partners that governs how a partner can transfer their shares. Massroots is not as big a concern for Aphria because they could simply sell their Massroots' shares in the open market. I can easily see a path to a win-win situation for both Aphria and TMX. Aphria flips their interest in Copperstate into LHS Inc. Aphria is now in full compliance with TMX and TMX accomplishes what they intended to do. Aphria would no longer continue to hold any US assets directly. Both TMX and Aphria can claim victory under this scenario. M
Mike411Ontario wrote: Thank you to all for the knowledge sharing, this BB is awsome.
Monte your statement is interesting. Most I am sure, think that LHS is the major concern but you say that Copperstate is the issue. Why is that so ? What is the difference between those investments?
The one investment causing the most concern for TMX is Copperstate and to a lesser extent investments such as Massroots. Need to deal with Coopperstate. I did have a chance to speak to Copperstate ownership at AGM and all though he was in favour of Aphria spinning Copperstate into LHS he has business partners and it would be a partnership decsion. Blue is right when he says shareholder agreements in place and clauses that get triggered wehn transfer of ownership is taking place. Sort out the Copperstate issue and all other issues with TMX start to fall in place.
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