Canopy Growth Corporation acquires two Quebec-based companies
Smiths Falls, ON-based Canopy Growth Corporation is expanding its reach into Quebec with the acquisition of licensed hemp producer Groupe Hemp, as well as ownership of Vert Médical, a company currently applying to Health Canada for a license to grow medical marijuana. Canopy Growth has also acquired the lease and the right to acquire 90 acres of land and a 7,000 square foot indoor growing and office facility located in Saint-Lucien, Quebec.
“We have spent the last few months assessing the market for potential acquisitions and Vert is one of a select few that stood up to our financial and business evaluation,” said Bruce Linton, Chairman & CEO, Canopy Growth in a statement. “Expanding the medical cannabis market in Quebec is a key objective for our business and the acquisition of Vert gives us an exceptional platform upon which to meet the needs of the market in Quebec.”
Canopy Growth says its subsidiaries are already leaders in the Quebec market, accounting for approximately 30% of medical cannabis shipments made to registered patients in Quebec. Through its subsidiaries, Canopy has made key investments in the province including funding for the Quebec Cannabis Registry, which gathers information on the demographic profiles of patients who use medical cannabis, the medical purpose for which they use it, and at what dosage, while tracking the effectiveness and safety of cannabis used in the management of symptoms associated with particular health conditions.
In consideration for the acquired shares in Vert Médical, Canopy Growth will assume and immediately pay debt of approximately $500,000. In addition, Canopy Growth will issue up to 294,900 common shares of the Corporation, if and when specific licensing and capacity expansion related milestones are achieved, except for 58,978 common shares which will be issued on closing.
Groupe H.E.M.P.CA, licensed by Health Canada to cultivate hemp and extract oil from hemp seeds, has also been acquired by Canopy. In consideration for the acquired shares in Groupe Hemp, Canopy Growth will issue 258,037 common shares of the Corporation of which 50% will be issued on closing and the remainder released by April 1, 2017. In addition, the Corporation will pay $300,000 on closing and assume debt of approximately $276,000 which will be due on April 1, 2017.
LaBarge Weinstein LLP acted as counsel to Canopy Growth Corporation with a team that included Debbie Weinstein, Dan Scott, Tayyaba Khan and Nicolas Joubert.
Read more in Canopy Growth Corporation’s press release.