Canopy Growth Corp. of Smiths Falls, Ont., has an agreement to buy pharmaceutical distributor MedCann, which has placed the Canadian marijuana company’s Tweed-branded cannabis strains in German pharmacies.
“Germany has begun a process of enabling medical access to cannabis and through a policy that recognized Canopy as the first legal supply source from North America,” said Canopy chairman and CEO Bruce Linton in a statement.
“This acquisition establishes a distinct and purely medicinal corporate entity that helps us today but also positions us for domestic medicinal production inside Germany if the regulatory environment shifts.”
OBJ360 (Sponsored)
Why it is vital to register your trademark—and what can happen if you do not
When an aesthetic nurse in Kitchener-Waterloo named her new business “Kraftwurk,” it was partly an homage to the region’s rich German heritage. But she likely did not realize it would
From world-class to worrisome: The challenges facing Ottawa transit
This has been an incredible year for news. There are many contenders for Ottawa newsmaker of the year: Michael Andlauer’s Senators ownership and a new arena at LeBreton Flats; Tobi
Mr. Linton has previously said that he wants Canopy to “dominate” the global marijuana market.
The German purchase, subject to approvals, will be made with 674,631 Canopy shares (TSX:CGC), which on Monday closed at $11.22 on the Toronto Stock Exchange, up 5.85 per cent.
At that value, the transaction would be worth about $7.57 million upon closing.
Canopy would also pay up to 490,000 shares over two years if certain performance targets are achieved, bringing the total number of shares to be issued to about 1.16 million – one per cent of Canopy’s current common shares.
Canopy Growth currently has a market value of about $1.29 billion, based on Monday’s stock price.
