Namaste issued their own press release, both contradicting La Presse for their characterization of the issues, and confirming the cancellation. “We were very disappointed to see this article published on Lapresse.ca which was not only misleading but completely inaccurate in relation to many of the claims related to the Company,” said Sean Dollinger, President and CEO of Namaste. “Furthermore, it is with disappointment that Tilray chose to terminate the agreement, as Namaste was not in breach of any terms of the agreement.”
The news also underscores the increasing scrutiny and industry sensitivity to a wide range of issues that both Canadian and U.S.-listed companies that do business in Canada will have to pay attention to in the future, if this latest hasn’t brought them into sharp relief already. These issues relate not only to equity raises and the various tactics that companies will employ to retain early-stage investors who may have visions of cashing out as everyone else is buying in, but also to the promotional tactics that licensed producers, accessory sellers, and retailers will be able to employ to attract and retain medical users and recreational-use customers. Cannabis growers and sellers face a complex and evolving system of regulations and restrictions relating to the marketing of cannabis as set out in Bill C-45 and the ensuing federal, provincial, and municipal regulation, guidance and enforcement regarding virtually all aspects of the business.