Canada’s largest medical cannabis firm continued its international expansion campaign this week, announcing a new partnership that will extend its reach into Denmark.
Smiths Falls-based Canopy Growth Corp. (TSX: WEED) said it is joining forces with Danish Cannabis ApS to create a new joint venture called Spectrum Denmark ApS that will supply medical marijuana to patients in the Scandinavian country.
As part of the deal, Canopy will invest $10 million in the venture and issue up to 1.9 million common shares in the corporation.
Canopy said in a news release the country’s entire supply of medical cannabis currently consists of “costly handmade compounds” available at just one pharmacy. Denmark recently legalized the broader sale of medical pot beginning on Jan. 1, 2018.
“Canopy Growth is confident that the production and formulation model it has built in Canada will lead to clear consumer preference for Spectrum's oil and dried cannabis products,” the firm said in a statement.
This week’s announcement continues Canopy’s wave of recent expansion into foreign markets. Last week, the company said it has inked a pair of deals to supply its products to firms in Australia and Spain.
“International market opportunities are emerging quickly, and Canopy has the experience and expertise to turn these opportunities into greater shareholder value,” Canopy Growth CEO Bruce Linton said in a statement.
Canopy’s stock was down just over one per cent to $10.32 in mid-afternoon trading on the Toronto Stock Exchange.