NEWS
01/10/2018 07:33 EST | Updated 01/10/2018 07:40 EST

Aphria stands by U.S. investment despite enforcement crackdown, delisting threat

LEAMINGTON, Ont. — Licensed marijuana producer Aphria Inc. (TSX:APH) says it stands by its decision to invest south of the border, despite a recent U.S. cannabis crackdown and a warning from Canada's biggest exchange operator that cross-border pot firms could face a delisting.

The comment from Aphria's CEO Vic Neufeld comes less than a week after U.S. Attorney General Jeff Sessions rescinded an Obama-era memo that suggested that the federal government would not intervene in states where the drug is legal.

Neufeld's comments also comes as the TMX Group, which operates the Toronto Stock Exchange and the TSX Venture, reviews cannabis firms for compliance with U.S. federal law which deems pot illegal, violators of which could face a delisting.

Neufeld says Aphria has not received a delisting request from any regulator over its assets in Florida and Arizona.

He believes regulators will be receptive to Aphria's strategy, a comment that comes after Neufeld said in December the pot producer would to reduce its direct involvement in U.S. medical cannabis, including by moving assets under subsidiary companies.

Meanwhile, the umbrella organization for Canada's provincial and territorial securities regulators issued a notice in October outlining its more lax approach, that cannabis companies must disclose to investors about certain risks when investing in the U.S.