‘Groundbreaking’: 48North’s purchase of US cannabis company signals major shift by TSX Venture Exchange

“突破性进展”:48 North 收购美国大麻公司标志着 TSX 风险交易所( TSX Venture Exchange )的重大转变

2019-10-04 21:42:59 mjbizdaily

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The TSX Venture Exchange appears to be easing its opposition toward Canadian cannabis companies buying U.S. marijuana businesses. The move would mark a major shift for the Canadian exchange and could open the door to more cross-border acquisitions – provided the deals meet strict conditions. The apparent change in stance comes after a Canadian cannabis company listed on the TSXV purchased a U.S. cannabis vaporizer company over the summer: Rare Industries, which does business as Quill. Toronto-based 48North’s acquisition in August of Quill for 2.1 million Canadian dollars ($1.7 million) in cash and stock – plus another CA$3.15 million conditional on Quill’s meeting financial targets – represents a milestone for the industry, experts say. if (!window.AdButler){(function(){var s = document.createElement("script"); s.async = true; s.type = "text/javascript";s.src = 'https://servedbyadbutler.com/app.js';var n = document.getElementsByTagName("script")[0]; n.parentNode.insertBefore(s, n);}());} var AdButler = AdButler || {}; AdButler.ads = AdButler.ads || []; var abkw = window.abkw || ''; var plc299585 = window.plc299585 || 0; document.write('<'+'div id="placement_299585_'+plc299585+'">'); AdButler.ads.push({handler: function(opt){ AdButler.register(172085, 299585, [300,250], 'placement_299585_'+opt.place, opt); }, opt: { place: plc299585++, keywords: abkw, domain: 'servedbyadbutler.com', click:'CLICK_MACRO_PLACEHOLDER' }}); It could serve as a blueprint for other Canadian cannabis companies seeking to enter the huge U.S. market without running afoul of the TSXV’s rules. Since October 2017, the Toronto Stock Exchange (TSX) and the TSXV said companies with direct business ties to U.S. marijuana companies risk being delisted. “This is a big win for 48North, and it’s a big win for TSXV-listed cannabis companies in general, because it signals that if you’re involved in the business that Quill is involved in, you should likely not be subject to delisting. And in the proper circumstances with all the relevant facts, the TSXV will consider allowing you to acquire such a business and expand into the U.S. marketplace,” said Andrew J. Wilder, chairman of the cannabis group at the Torkin Manes law firm in Toronto. Kevin Helfand, 48North’s chief operating officer, said it signals a “shift.” “It is a groundbreaking deal.” A TSXV spokesperson said the exchange doesn’t comment on the companies trading on its platform. What’s not allowed In October 2017, the TSXV issued a guidance stating exactly how issuers with business activities violating U.S. federal law regarding cannabis were not in compliance with its rules. The bulletin enumerates four scenarios that are off limits for its issuers. Those situations are listed “in order of concern” as: After the bulletin was issued, the risk of delisting prompted some firms on the TSX and TSXV – including Aphria – to sell or spin off U.S. assets because they were in violation of one of the bulletin’s four points. Others – such as Aurora Cannabis subsidiary Australis Capital – list on the Canadian Securities Exchange (CSE), which allows issuers to participate in the U.S. marijuana industry provided they meet risk disclosure requirements. In Quill’s case, part of its business involves selling vape delivery hardware to licensed marijuana processors to fill with cannabis extracts, including THC. (The company also is expanding into hemp-derived CBD vaporizers.) Even though Quill does not touch the marijuana plant, the company would be tripped up by No. 4 of the bulletin, which theoretically bans “ancillary services activities” for plant-touching cannabis companies. So how did 48North win TSXV approval to buy Quill? How 48North did it Helfand highlighted four words in the bulletin as important: “in order of concern.” “And that’s where we started,” he said. “So one and two (of the bulletin) are out for us. We have no direct ownership in a U.S. plant-touching business. But we said, ‘What’s in order of concern’? Three and four are definitely lower on the list, so they’ll have lesser concern,” Helfand said of the ancillary provisions. That is where the company started the conversation with the TSX Venture Exchange. Helfand said this particular discussion involving the TSXV and Quill lasted between three and six months. Quill distributes its vape products in Oregon and Washington state and is expected to expand into California and Nevada, according to a release outlining the 48North acquisition. The company is not engaged in the cultivation, distribution or possession of cannabis in the United States. “Quill, at its focus, is not a plant-touching business in the United States, and that’s the distinction we had to make with the (TSXV) and work through the (TSXV) rules, because we’re still offside them, but now to a lesser extent,” he said. The question 48North posed to the TSXV was simple: What amount of ancillary services activities are acceptable, if any? “I think we had a discussion with them that they’d never had: Is there a de minimis amount that the TSXV would be comfortable with? And if so, would you be comfortable stating that out loud?” Revenue a key indicator The regulator told 48North that the measure was determined, in part, by revenue on an overall organizational basis. That means the issue became the ratio of revenue from the ancillary services compared with the revenue generated from federally legal activities – both current and projected – in the United States and in Canada. 48North said it had to do a “very deep dive” with the TSXV about the company’s business plan and where its revenue is going to come from in the future, as well as Quill’s business plan, and where its revenue is likely to come from in the future. According to the news release outlining the 48North purchase, Quill is launching a hemp-based CBD vaporizer pen. The basic idea is that Quill’s CBD business – which is federally legal thanks to the 2018 Farm Bill – is expected to grow at a much faster rate than any revenue it gets from ancillary services activities for THC. “It became important to this discussion for the TSXV. Yes, (Quill) has a business where they are selling pens that are being filled with THC. And yes, that business is still growing, but as long as it’s growing at a smaller pace than the rest of the business, then they’re all very happy,” he said. Shortly after the Quill acquisition was announced, 48North secured 1 billion milligrams of CBD oil from Iverson Family Farms in Oregon via an industrial hemp production contract. “The overall focus for Quill is this CBD vape, and that’s where the bulk of the revenue will be coming as they move forward, and in relation, percentagewise, to the revenue we do in Canada,” Alison Gordon, 48North’s CEO, said in an interview. That Canadian revenue is expected to outpace the growth of the ancillary services in the United States was another important consideration, said Helfand. “And that’s what got them comfortable.” Optics  Besides the revenue ratio and plant-touching factors, a lot of the discussion with the TSXV involved how Quill looked to the public. “All of those things together were very important,” COO Helfand said. “A lot of their concerns were how things looked optically, even though they’re not plant touching.” That involved updating public-facing documentation online. “So there was a fair amount of due diligence on the part of the TSXV, and there was a tremendous amount of reaction from us to appease their concerns and make it clear to them what Quill was and was not. He said being collaborative and willing to have the conversation is important in dealing with any regulator. “The TSXV is no different. They have their own stakeholders that they have to answer to. Once you understand what makes them tick as a regulator, then you can have an honest conversation. There’s no subterfuge here, there’s no tricks,” he said. Would this deal have been allowed 18 months ago? “No, absolutely not,” Helfand said. “I don’t think they would have even contemplated it. I think they would’ve got a straight ‘no.’ Times are changing.” “This entire business is an evolution, not a revolution. And the public markets aspects of the cannabis industry are no different. It’s baby steps.” Matt Lamers can be reached at [email protected]
TSX 风险交易所( TSX Venture Exchange )似乎正在缓解对加拿大大麻公司收购美国大麻业务的反对。 此举将标志着加拿大证交所的重大转变,并可能为更多跨境收购打开大门——前提是交易符合严格的条件。 这一立场明显改变之前,在 TSXV 上市的加拿大大麻公司在今年夏天收购了一家美国大麻蒸发器公司: Rare Industries ,该公司的业务与 Quill 一样。 专家表示,总部位于多伦多的48 North 公司8月份以210万加元(合170万美元)现金和股票收购 Quill ,加上另一笔315万加元(以 Quill 实现财务目标为条件)是该行业的一个里程碑。 如果(! windows.AdButler ){( function (){ vars = document 。createElement (" script "); s .async = true ; s 。type =" text / javascript "; s 。src =' https://servebyadbutler 。com / app 。js '; var n = document 。getElements ByTagName (" script ")[0]; n 。父母。插入( s , n );();} 变量 AdButler = AdButler |{}; AdButler 。广告= AdButler 。广告[]; varabkw = wind 。abkw |; var plc299585= window 。plc299585||||0; 文件。写入(<'+' div id =" place _299585_+ plc299585+"); 阿德巴特勒。广告。push ({ handler : function ( opt ){ AdButler 。register (172085,299585,[300,250],' place _299585_+ opt.place , opt );}, opt :{ place : plc299585++,关键字: abkw , domain :' served by ad管家。com ',单击:' CLICK _ MACRO _ PLCEHOLDER '}"; 这可能会成为其他加拿大大麻公司在不违反 TSXV 规则的情况下进入美国市场的蓝图。 自2017年10月以来,多伦多证券交易所( TSX )和多伦多证券交易所( TSXV )表示,与美国大麻公司有直接业务关系的公司可能被摘牌。 “这对48North 来说是一个巨大的胜利,对 TSXV 上市的大麻公司来说,这是一个巨大的胜利,因为这表明,如果你参与了 Quill 参与的业务,你不应该被除名。多伦多 Torkin Manes 律师事务所大麻小组主席安德鲁· J ·怀尔德( Andrew J . Wilder )说,“在所有相关事实的适当情况下, TSXV 将考虑允许你收购这样一家企业,并向美国市场扩张。” 48 North 首席运营官 Kevin Helfand 表示,这标志着“转变”。 “这是一项突破性的交易。” TSXV 的一位发言人说,该交易所没有对在其平台上交易的公司发表评论。 什么是不允许的 2017年10月, TSXV 发布了一份指导意见,详细说明了从事违反美国联邦法律有关大麻的商业活动的发行人如何不遵守其规则。 该公告列举了四种对其发行商不受限制的情况。 这些情形列于“关注顺序”为: 公告发布后,东京证交所和东京证交所的一些公司(包括 Aphria )出售或剥离美国资产,是因为它们违反了公告中的四点之一。 其他公司——比如奥罗拉(Aurora) Cannabis 子公司 Australalis Capital ——在加拿大证券交易所( CSE )上市,只要满足风险披露要求,这些公司就可以参与美国大麻行业。 在 Quill 的案例中,该公司的部分业务涉及向授权的大麻加工商销售吸食输送硬件,以填充大麻提取物,包括 THC 。(该公司还在向大麻衍生的 CBD 汽化器扩张。) 尽管 Quill 并未触及大麻工厂,但该公司将被公告第4号绊倒,该公告理论上禁止从事与植物有关的大麻公司的“辅助服务活动”。 那么北电如何赢得 TSXV 的批准来收购奎尔? 北边干了多少 Helfand 在公告中强调了四个词的重要性:“出于关切。” “这就是我们开始的地方,”他说。“所以一、二条(公告)是我们的。我们对一家涉及工厂的企业没有直接所有权。但我们说,“什么是值得关注的?”其中有三项和四项肯定较低,因此他们的担心会较少,”赫尔凡德在谈到附属条款时表示。 这是该公司开始与 TSX 风险交易所的对话。 Helfand 说,这次涉及 TSXV 和 Quill 的特别讨论持续了三到六个月。 Quill 在俄勒冈州和华盛顿州销售其 vape 产品,预计将扩展到加利福尼亚州和内华达州,根据一份概述48北收购的新闻稿。该公司不在美国从事大麻的种植、分销或拥有业务。 “在美国,很大程度上,这不是一项涉及工厂的业务,这是我们与( TSXV )的区别,我们必须遵守( TSXV )规则,因为我们仍然在超越它们,但现在在较小程度上,”他说。 向 TSXV 提出的问题48North 很简单:有多少辅助服务活动可以接受? “我认为我们和他们讨论过他们从来没有过: TSXV 会接受的最低金额是多少?如果是这样的话,你会乐意大声说出来吗?“这是一个很好的选择。” 收入是一个关键指标 该监管机构告诉48 North ,该措施在一定程度上是由整体组织基础上的收入决定的。 这意味着,与美国和加拿大目前和预计的联邦法律活动产生的收入相比,这个问题变成了辅助服务收入的比例。 48North 表示,它必须对 TSXV 进行“非常深入的调查”,了解该公司的业务计划、未来收入将来自何处、以及 Quill 的业务计划,以及未来收入可能来自何处。 根据概述48北购买的新闻发布, Quill 正在推出一个基于大麻的 CBD 汽化笔。 基本的想法是, Quill 的 CBD 业务(得益于2018年农业法案,该业务在联邦法律上是合法的)增长速度预计将远远快于它从 THC 附属服务活动中获得的任何收入。 “ TSXV 的讨论变得重要。是的,(奎尔)有一家公司,他们出售的钢笔正在填充 THC 。是的,该业务仍在增长,但只要增长速度低于其他业务,那么它们都非常高兴,”他说。 在 Quill 收购宣布后不久,48North 通过一份工业大麻生产合同从俄勒冈州艾弗森家庭农场获得了10亿毫克 CBD 石油。 48 North 首席执行官艾莉森•戈登( Alison Gordon )在一次采访中表示:“ Quill 的总体重点是 CBD 的虚幻,这就是大部分收入将随着收入的增长而来,相对于我们在加拿大的收入,从百分比上来说。” Helfand 说,加拿大的收入预计将超过美国辅助服务的增长,这是另一个重要的考虑因素。 “这让他们感到舒适。” 光学 除了收入比率和与工厂有关的因素外,与 TSXV 的许多讨论都涉及到 Quill 如何看待公众。 “所有这些都是非常重要的,”首席运营官 Helfand 表示。“他们的很多担忧都是,尽管这些东西并不触动植物,但它们在光学上看起来是如何的。” 这涉及在线更新面向公众的文档。 “因此, TSXV 有相当多的尽职调查,我们做出了巨大的反应,以安抚他们的担忧,并向他们表明 Quill 是什么,不是什么。 他说,在与任何监管机构打交道时,合作和愿意进行对话是很重要的。 “ TSXV 没有什么不同。他们有自己的利益相关者,他们必须回答。一旦你了解了什么使他们成为一个监管者,那么你就可以有一个诚实的谈话。这里没有诡计,也没有诡计。” 这笔交易在18个月前会被允许吗? “不,绝对不会,”赫尔凡德说。“我认为他们甚至不会想到这件事。我认为他们会直接‘不’时代正在改变。” “整个行业都是一种进化,而不是革命。大麻产业的公共市场方面也没有什么不同。这是婴儿的步骤。” Matt Lamers 可以通过[电子邮件保护]联系到.

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