|By Marketwired .||
|July 8, 2014 04:01 PM EDT||
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 07/08/14 -- Canada Coal Inc. (the "Company" or "Canada Coal"), (TSX VENTURE:CCK) announces that pursuant to a review conducted by the Staff of the Ontario Securities Commission ("OSC"), the OSC has requested that the Company clarifies certain statements made by the Company in its April 14, 2014 press release announcing that the Company was evaluating opportunities in the medical marijuana ("MM") space.
The Company continues to explore potential opportunities in the MM field although, at this time, the Company has not entered into any form of letter of intent or definitive agreement in respect to any transaction. The Company's efforts, to date, have focused on conducting due diligence on a potential target company that has applied to be a "Licenced Producer" under the Marijuana for Medical Purposes Regulations ("MMPR"). Such target company has not, to date, received such a licence from Health Canada. The obtaining of such license would be a condition precedent to any transaction the Company may enter into.
In respect to any transaction the Company may pursue in the MM field, the Company cautions as follows: (i) the Company is still in an early stage of exploration into potential MM business opportunities and there can be no assurance that any such projects in the industry will be successfully completed; (ii) the Company confirms that it has no intention to apply for a MMPR licence directly; rather, the Company (as stated in its April 14, 2014 press release) is focused on acquiring a target that has received such a licence from Health Canada; (iii) at this time, the Company cannot quantify the time frame and costs associated with entering the MM field since the Company is still at a preliminary stage of investigation; (iv) any transaction to acquire a MM business will be subject to board of director, shareholder and regulatory approval including that of the TSX Venture Exchange; (v) furthermore, at this time, the Company's board of directors has not passed any resolution to approve entry into the MM field, or to authorize the Company to amend its principal business; (vi) that Health Canada has stringent licensing requirements applicable to all entities that obtain a MM licence, including significant infrastructural requirements of attaining and maintaining a licence (such as an indoor growing facility with physical barriers, visual monitoring, recording devices, intrusion detection, air filtration systems, as well as other important controls around distribution and access); and (vii) that any facility meeting the rigorous licensing requirements of Health Canada must be available for inspection by Health Canada before any licence can be granted.
About Canada Coal
Canada Coal is a publicly listed company focused on coal exploration and development in Nunavut. Through its two wholly-owned subsidiaries, Canada Sovereign Coal Corp. and 5200 Nunavut Ltd., Canada Coal holds 59 active and 9 pending coal exploration licence blocks totaling 1,769,539 acres located primarily on Ellesmere Island in Nunavut (the "Nunavut Coal Property").
On behalf of the Board of Directors
R. Bruce Duncan, President and Chief Executive Officer