Aphria secures an 18 month lock-up agreement on divestiture of Liberty stock
TORONTO, July 23, 2018 /CNW/ - Liberty Health Sciences Inc. (CSE: LHS) (OTCQX: LHSIF) ("Liberty" or the "Company") is pleased to announce Aphria Inc. ("Aphria") has entered into an 18 month lock-up or stand-still agreement with the purchasers of Aphria's shares in Liberty. The divestiture of Liberty stock by Aphria was originally announced on February 5, 2018 as part of Aphria's commitment to the Toronto Stock Exchange.
A group of buyers led by members of the Serruya family ("Group") had entered into a purchase and sale agreement with Aphria to purchase all of Aphria's shares in the Company that are not subject to Canadian Securities Exchange escrow requirements over the course of a two and a half year period. Under the CSE escrow requirements, the shares will be released from escrow in six month intervals and will be completely released by the middle of 2020. The new agreement prevents the Group from selling the next tranche of Liberty shares owned by Aphria that will become freely trading on July 26, 2018 for a period of 18 months and provides Aphria with the ability to purchase the shares back if U.S. federal laws change, subject to certain conditions including consent of the Toronto Stock Exchange. Aphria's current ownership position is 23.6% of the issued and outstanding shares of Liberty.
"We are extremely pleased that Aphria entered into the lock-up agreement with the Group. There is no question that this action will remove any uncertainty in the market surrounding the Group's purchase of the shares and their long term commitment and endorsement of Liberty," said CEO George Scorsis.
About Liberty Health Sciences Inc.
Liberty Health Sciences Inc. operates in cannabis markets focusing on improving the lives of our consumers. Liberty's stringent investment criteria for expansion maximizes returns to shareholders, while focusing on significant near- and mid-term opportunities while keeping consumers' well-being at the forefront of what we do. Liberty has an extensive background in highly regulated industries, with expertise in becoming a low-cost producer. Liberty leverages commercial greenhouse knowledge to deliver high-quality, clean and safe pharmaceutical grade cannabis to consumers.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: This press release contains certain forward-looking statements within the meaning of applicable securities laws. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as "may", "should", "anticipate", "expect", "believe", "plan", "intend" or the negative of these terms and similar expressions. Forward-looking statements in this news release include, but are not limited to, expectations related to the Company's future expansion and growth strategies, the repurchase by Aphria of shares of Liberty, changes to U.S. federal laws and approval from the Toronto Stock Exchange. Forward-looking statements necessarily involve known and unknown risks, including, without limitation, risks associated with general economic conditions; adverse industry events; marketing costs; loss of markets; future legislative and regulatory developments involving medical marijuana; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the medical marijuana industry in the United States generally, income tax and regulatory matters; the ability of Liberty to implement its business strategies; competition; crop failure; currency and interest rate fluctuations and other risks.
Readers are cautioned that the foregoing list is not exhaustive. Readers are further cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement.
SOURCE Liberty Health Sciences Inc.
For further information: For Canadian media inquiries, please contact: Hilary Sloan, Edelman, (416) 908-2134, [email protected]; For U.S. media inquiries, please contact: David Schull or Nic Johnson, Russo Partners, (858) 717-2310, [email protected], [email protected]