Vancouver-based marijuana company, MYM Nutraceuticals Inc., is looking to expand its global presence. However, they will initially exclude the United States in their efforts. According to the company’s legal counsel, marijuana’s current status as a “Schedule 1” substance could create the potential for the Canadian company to be at risk of being prosecuted and having assets seized. The company maintains that as long as the current Federal status for marijuana remains the same, they will continue to turn down business dealings in the states. Do you think that this is a prudent approach by MYM?
VANCOUVER, British Columbia, Oct. 20, 2017 /PRNewswire/ — As announced on October 18, 2017, MYM Nutraceuticals Inc. (CSE:MYM) (OTC:MYMMF) (MYM.CN) (the “Company” or “MYM”) is very excited to now be a major player in the emerging Australian marijuana industry, but feels compelled to clarify its position on marijuana operations in the United States.
MYM’s executives, advisors and legal counsel have consistently held the opinion that marijuana assets in the United States would be toxic due to the fact that marijuana is classified as a “Schedule 1” narcotic alongside heroin and cocaine, making it federally illegal in the U.S. The federal laws regarding marijuana could be enforced at any time, and this would put Canadian companies with U.S. marijuana-related activities at risk of being prosecuted and having their assets seized. Charges could include drug dealing, possession of narcotics, money laundering, engaging in organized criminal activity and more. For these reasons, MYM has turned away many deals in the USA that were presented to the Company.
Reinforcing our view on this, on October 16, 2017, the Canadian Securities Administrators (“CSA”) issued a Staff Notice to all public companies with operations in the United States. “We expect issuers with marijuana-related activities in the U.S. to address the current legal and regulatory environment in their disclosures, including any risks that result from changes in the approach to enforcement of U.S. federal law,” said Louis Morisset, CSA Chair and President and CEO of the Autorité des marchés financiers.
The CSA’s disclosure requirements apply to all issuers with U.S. marijuana-related activities, including those with direct and indirect involvement in the cultivation and distribution of marijuana, as well as issuers that provide goods and services to third parties involved in the U.S. marijuana industry. Issuers are expected to provide these disclosures in prospectus filings and other required documents, such as their Annual Information Form and Management’s Discussion and Analysis. The Toronto Stock Exchange (TSX) stated that they will “review companies by end of year and delist any that aren’t in compliance.”
Since Donald Trump and the Republicans have taken over the White House, they have been reversing the progress President Obama had made for the marijuana industry. And more recently, the tough talk about marijuana has been getting louder. The Justice Department under Attorney General Jeff Sessions has effectively shut down marijuana research. Sessions also was quoted as saying “Good People Don’t Smoke Marijuana” and “Marijuana Is Only ‘Slightly Less Awful’ Than Heroin,” and has scoffed at any medical benefits it may have. Drug Enforcement Administration acting chief Chuck Rosenberg declared Thursday that “marijuana is not a medicine.” This makes the outlook for marijuana in the coming years dismal as much of the progress made under Obama could be rolled back.
MYM is, however, working on launching the Company’s “Joshua Tree” line of CBD products across the United States, as CBD, being non-psychoactive, is legal there. The Joshua Tree brand launch is planned for early 2018.
Although the USA marijuana industry could suffer major setbacks in the next 3 years, this is great news for Canadian cannabis companies like MYM. The Company can thrive here in Canada and in Australia in a completely legal cannabis environment. A huge amount of US capital has remained undeployed due to the US Federal laws preventing investment in illegal businesses, but what is happening is that capital is now looking north. Large institutions, funds and investment banks are wanting to invest in the legal cannabis business. There are only two first world countries that have legalized cannabis, Canada and Australia. MYM has been in talks with multiple American groups wanting to finance MYM projects.
MYM Nutraceuticals Inc. is an innovative company focused on acquiring Health Canada licenses to produce and sell high-end organic medicinal cannabis supplements and topical products. To ensure a strong presence and growth potential within the industry, MYM is actively looking to acquire complementary businesses and assets in the technology, nutraceuticals and CBD sectors. MYM shares trade in Canada, Germany and the USA under the following symbols: (CSE: MYM) (OTC:MYMMF) (FRA:0MY) (DEU:0MY) (MUN:0MY) (STU:0MY).
ON BEHALF OF THE BOARD
Rob Gietl, CEO
MYM Nutraceuticals Inc.
This news release may contain forward-looking statements based on assumptions and judgments of management regarding future events or results. Such statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements. The company disclaims any intention or obligation to revise or update such statements. For a description of the risks and uncertainties facing the Company and its business and affairs, readers should refer to the Company’s Management’s Discussion and Analysis and other disclosure filings with Canadian securities regulators, which are posted on www.sedar.com.
This news release does not constitute an offer to sell or solicitation of an offer to buy any of the securities described herein and accordingly undue reliance should not be put on such. Neither the Canadian Securities Exchange (CSE or CNSX Markets), nor its Regulation Services Provider (as that term is defined in policies of the CSE), accepts responsibility for the adequacy or accuracy of this release.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein in the United States. The securities described herein have not been registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities law and may not be offered or sold in the “United States”, as such term is defined in Regulation S promulgated under the U.S. Securities Act, unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration requirements is available.