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the competitive advantages and business strategies of the Registrant;
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the grant, renewal and impact of any license or supplemental license to conduct activities with cannabis or
any amendments thereof;
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the medical benefits, viability, safety, efficacy, dosing and social acceptance of cannabis;
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the Registrants future product offerings;
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the anticipated future gross margins of the Registrants operations;
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expectations regarding capital expenditures;
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accounting standards and estimates;
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expectations regarding the resolution of litigation and legal proceedings;
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expectations regarding the use of proceeds of equity financings, including the proceeds from the $2.4 billion
investment in the Registrant (the Altria Investment) by Altria Group, Inc. (Altria);
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expectations regarding the potential success of, and the costs and benefits associated with, the
Registrants joint ventures and strategic alliances, including the Registrants strategic partnership with Ginkgo Bioworks, Inc.;
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the anticipated benefits and impact of the Altria Investment; and
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the potential exercise of the warrant issued to Altria in connection with the Altria Investment, including
proceeds to the Registrant that may result therefrom.
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Certain of the Forward-Looking Statements contained in this
Annual Report concerning the cannabis industry are based on estimates prepared by the Registrant using data from publicly available governmental sources, market research, industry analysis and assumptions based on data and knowledge of this industry
which the Registrant believes to be reasonable. However, although generally indicative of relative market positions, market shares and performance characteristics, such data is inherently imprecise. While the Registrant is not aware of any
misstatement regarding any industry or government data or other information presented herein that is based on such data, the cannabis industry involves risks and uncertainties that are subject to change based on various factors, which factors are
described further below.
The Forward-Looking Statements contained in this Annual Report are based upon certain material assumptions that
were applied in drawing a conclusion or making a forecast or projection, including (i) managements perceptions of historical trends, current conditions and expected future developments; (ii) the Registrants ability to generate cash
flow from operations and obtain necessary financing on acceptable terms; (iii) general economic, financial market, regulatory and political conditions in which the Registrant operates; (iv) the output from Peace Naturals Project Inc.
(Peace Naturals), Original BC Ltd. (OGBC) and the Registrants joint ventures and strategic alliances; (v) consumer interest in the Registrants products; (vi) competition; (vii) anticipated and unanticipated
costs; (viii) government regulation of the Registrants activities and products and in the areas of taxation and environmental protection; (ix) the timely receipt of any required regulatory authorizations, approvals, consents, permits
and/or licenses; (x) the Registrants ability to obtain qualified staff, equipment and services in a timely and cost efficient manner; (xi) the Registrants ability to conduct operations in a safe, efficient and effective manner;
(xii) the Registrants construction plans and timeframe for completion of such plans; and (xiii) other considerations that are believed to be appropriate in the circumstances, including that the foregoing factors, collectively, are not
expected to have a material impact on the Registrant. While management of the Registrant considers these assumptions to be reasonable based on information currently available to management, there is no assurance that such expectations will prove to
be correct.
By their nature, Forward-Looking Statements are subject to inherent risks and uncertainties that may be general or specific
and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved.
A variety of factors, including known and unknown risks, many of which are beyond the Registrants control, could cause actual results to differ materially from the Forward-Looking Statements in this Annual Report. Such factors include, without
limitation, the risk that cost savings and any other synergies from the Altria Investment may not be fully realized or may take longer to realize than expected; disruption from the Altria Investment making it more difficult to maintain relationships
with customers, employees or suppliers; future levels of revenues; consumer demand for cannabis products; the Registrants ability to manage disruptions in credit markets or changes to its credit rating; future levels of capital, environmental
or maintenance expenditures, general and administrative and other expenses; the success or timing of completion of ongoing or anticipated capital or maintenance projects; business strategies, growth opportunities and expected investment; the
adequacy of the Registrants capital resources and liquidity, including but not limited to, availability of sufficient cash flow to execute the Registrants business plan (either within the expected timeframe or at all); the potential
effects of judicial or other proceedings on the Registrants business, financial condition, results of operations and cash flows; continued or further volatility in and/or degradation of general economic, market, industry or business
conditions; compliance with applicable environmental, economic, health and safety, energy and other policies and regulations; the anticipated effects of actions of third parties such as competitors, activist investors or federal (including U.S.
federal), state, provincial, territorial or local regulatory authorities, self-regulatory organizations or plaintiffs in litigation; and the factors discussed under the heading Risk Factors in the Registrants Annual Report for the
year ended December 31, 2018, included as Exhibit 99.1 to this Annual Report (AIF) and those discussed under the heading Risks and Uncertainties in the Registrants managements discussion and analysis for the year
ended December 31, 2018 (MD&A), included as Exhibit 99.3 to this Annual Report. Readers are cautioned to consider these and other factors, uncertainties and potential events carefully and not to put undue reliance on
Forward-Looking Statements.
Forward-Looking Statements are provided for the purposes of assisting the reader in understanding our
financial performance, financial position and cash flows as at and for periods ended on certain dates and to present information about managements current expectations and plans relating to the future, and the reader is cautioned that the
Forward-Looking Statements may not be appropriate for any other purpose. While the Registrant believes that the assumptions and expectations reflected in the Forward-Looking Statements are reasonable based on information currently available to
management, there is no assurance that such assumptions and expectations will prove to have been correct. Forward-Looking Statements contained herein are made as of the date of this Annual Report and are based on the beliefs, estimates, expectations
and opinions of management on the date such Forward-Looking Statements are made. The Registrant undertakes no obligation to update or revise any Forward-Looking Statements, whether as a result of new information, estimates or opinions, future events
or results or otherwise or to explain any material difference between subsequent actual events and such Forward-Looking Statements, except as required by applicable law. The Forward-Looking Statements contained in this Annual Report are expressly
qualified in their entirety by this cautionary statement.
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