I’ll do my best to answer all of your questions below. I appreciate the concern and frustration with respect to the recent share price performance. While it is true we have entered into a lot of transactions, this has enabled us to build a vertically integrated, horizontally diversified company that, we believe, will be exceptionally well positioned to capture margin along the cannabis industry value chain.
MedReleaf adds scale, efficiencies, product diversification, a strong medical and strong adult consumer use brands, additional international exposure, expanded domestic distribution, and further strategic synergies. Anandia adds incredible capabilities at the research end, which, among others, will enable us to develop new strains for particular applications or strains that are optimized for automated cultivations (let's assume that this will allow us to either increase yields or reduce costs by a few % points. On the scale of Sky, Nordic and Sun, that would have a dramatically positive impact). Our other investments have added tremendous value too.
For instance, look at our investment in TGOD, in which we own approximately 40 million shares at an average cost price of C$1.84, and which currently trade at C$5.65, a gain of over C$150 million, and we hold warrants too that are in the money. Similar for investments in companies such as Hempco, Cann Group, Choom and Radient. We are building a company that we believe will be able to capture share of the international cannabis opportunity, and doing this with large-scale, highly efficient, low cost production of high quality cannabis and high value added products.
With respect to the TFSA question – the spin off would not count as a voluntary contribution to your TFSA, rather it would be treated as a gain on investment. So regardless of the amount of money you’ve deposited this year (you can allocated up to $5,500K per year into your TFSA in 2018), this would be treated separated. More details on the annual contribution limits can be found here:https://www.macleans.ca/economy/money-economy/tfsa-contribution-limit/.
At this time, the company has not indicated that it would pursue a reverse stock split.
Edible products are not currently legalized, the expectation is that the federal government will table legislation to legalize edibles in 2019.
Insider transactions are tracked on SEDI (www.sedi.ca).
Shorting of stocks is a legal practice in Canada, an issuer can not do anything to stop someone from doing so.
Kind regards,
Robert Kelly Director of Investor Relations
Phone: +1 (647) 331-7228