Canopy Growth acquires outstanding shares in BC Tweed Joint Venture
SMITHS FALLS, ON, July 5, 2018 /CNW/ – Canopy Growth Corporation (“Canopy Growth” or the “Company”) (TSX: WEED) (NYSE: CGC) is pleased to announce that it has closed its previously announced transaction (the “Transaction”) to acquire the remaining 33% stake of BC Tweed Joint Venture Inc. (“BC Tweed”). The consolidation of the two largest federally licensed cannabis facilities in the world into full Canopy Growth ownership cements the Company’s commitment to shareholder value through scale production.
In connection with the Transaction, Canopy Growth has paid $1 million in cash as a non-refundable deposit against the purchase price and has issued $374 million worth of shares in the Company to the minority shareholders of BC Tweed (the “Operators”) based on the volume weighted average price per common share for the 20 trading day period ended May 11, 2018 (the “VWAP”). Payments are milestone-based and will be released over three years based upon the achievement of certain production milestones.
In addition, the Company will issue $20 million worth of common shares in the capital of the Company at the same VWAP in connection with an option to acquire certain future infrastructure from the Operators, subject to certain conditions.
Our BC Tweed operations have allowed us to pursue and finalize large recreational supply contracts across Canada. Construction and retrofitting work continues at both greenhouse sites to continue on an aggressive pace towards licensing all 3 million sq. ft. of production.
Mark Zekulin, President and Co-CEO, Canopy Growth
The BC Tweed greenhouses represent a meaningful share of the entire Canadian production landscape with up to 3 million sq. ft. of greenhouse growing capacity. Since the formation of BC Tweed in October of 2017, already over 1.7 million square feet has been licensed for production to meet oncoming recreational cannabis demand across the country.
Certain members of the Operators’ management team will continue on at the sites to drive production of high-quality cannabis and operational efficiency at scale.
All amounts are in Canadian dollars.
Here’s to Future (BC Bud) Growth.
About Canopy Growth Corporation
Canopy Growth is a world-leading diversified cannabis and hemp company, offering distinct brands and curated cannabis varieties in dried, oil and Softgel capsule forms. From product and process innovation to market execution, Canopy Growth is driven by a passion for leadership and a commitment to building a world-class cannabis company one product, site and country at a time.
Canopy Growth has established partnerships with leading sector names including cannabis icons Snoop Dogg and Organa Brands, breeding legends DNA Genetics and Green House seeds, and Fortune 500 alcohol leader Constellation Brands. Canopy Growth operates eight cannabis production sites with over 2.4 million square feet of production capacity, including over 500,000 square feet of GMP-certified production space. The Company has operations in seven countries across four continents. The Company is proudly dedicated to educating healthcare practitioners, conducting robust clinical research, and furthering the public’s understanding of cannabis, and through its partly owned subsidiary, Canopy Health Innovations, has devoted millions of dollars toward cutting edge, commercializable research and IP development. Through partly owned subsidiary Canopy Rivers Corporation, the Company is providing resources and investment to new market entrants and building a portfolio of stable investments in the sector. From our historic public listing to our continued international expansion, pride in advancing shareholder value through leadership is engrained in all we do at Canopy Growth. For more information visit www.canopygrowth.com
Get ahead of the crowd by signing up for 420 Investor, the largest & most comprehensive premium subscription service for cannabis traders and investors since 2013.