With $430M acquisition of Mettrum, Canopy Growth to add two national brands, additional production space
Canopy Growth Corporation has entered into an agreement with Toronto-based Mettrum Health Corp. that will see its stake in the Canadian medical marijuana industry grow. With its agreement to acquire Mettrum, Canopy Growth will add two national brands to its portfolio, increase its production platform and create room for further expansion.
The agreement to acquire Mettrum was announced on December 1. The transaction is valued at approximately CAD $430 million and will be satisfied by the issuance of common shares in Canopy Growth. Under the terms of the Arrangement Agreement, Mettrum shareholders will be entitled to receive 0.7132 common shares of Canopy Growth for each common share of Mettrum, representing consideration of C$8.42 per Mettrum common share based on the closing price of Canopy Growth common shares on the Toronto Stock Exchange (“TSX”) on November 30, 2016. Upon completion of the Arrangement, existing Canopy Growth and Mettrum shareholders are expected to own approximately 77.7% and 22.3%, respectively, of the pro forma company.
“From day one, Canopy Growth has viewed production capacity, brand diversity, and highly-skilled management as the foundational aspects of our business,” said a statement from Bruce Linton, Chairman and CEO of Canopy Growth. “Mettrum has established a line of cannabis products that work well in a medical context and will transition naturally into a natural and healthy lifestyle market. Their substantial production facilities will add to our growing production platform as we expand to meet the needs of patients, and their experienced personnel will help Canopy Growth drive our vision forward to the next level.”
Closing remains subject to approval of the shareholders of both Canopy Growth and Mettrum, court approval, the approval of the TSX, applicable regulatory approvals and the satisfaction of certain other closing conditions customary in transactions of this nature. Upon closing of the acquisition, Mettrum will become a wholly-owned subsidiary of Canopy Growth.
LaBarge Weinstein acted as counsel to Canopy Growth Corporation with a team that included Debbie Weinstein, Dan Scott, Kyle Lavender, Tayyaba Khan, Nick Jasperse and Lisa Trader.
Read the full press release here. Read the Financial Post article: “Canopy Growth Corporation to acquire Mettrum for $430M – making a mega-company serving half Canada’s medical pot users“.