- Canopy Growth Corporation (WEED) is divesting its subsidiary business, C³ Cannabinoid Compound Company GmbH, to Dermapharm Holding SE
- An upfront payment of C$115.5M will be made upon the closing of the transaction, anticipated to take place by January 31, 2022
- Canopy Growth will also be eligible to receive an earnout payment of up to $C61.4M
- Canopy Growth is a cannabis and cannabinoid-based consumer product company
- Canopy Growth Corporation (WEED) is down 0.923 per cent on the day, trading at $11.81 per share at 11 am ESTtes and sells medicinal and recreational cannabis
Canopy Growth Corporation (WEED) is divesting its subsidiary business, C³ Cannabinoid Compound Company GmbH, to Dermapharm Holding SE.
Dermapharm Holdings is a European pharmaceutical company headquartered in Grünwald, Germany.
The C³ business is comprised of Spectrum Therapeutics GmbH, based in Neumarkt-in-der-Oberpfalz, Germany, THC Pharm GmbH The Health Concept, based in Frankfurt, Germany, and Spectrum Therapeutics Austria GmbH, based in Vienna, Austria.
With the divesture of C³, Canopy Growth is continuing its evolution into a CPG-modelled organization. The company will continue to leverage its high-quality supply of Canadian cannabis products for the medical channel in its core international markets, including Germany, while also serving adult-use consumers in Canada.
As a result of the divesture, Canopy Growth is expected to avoid future operational complexities associated with C³ and is significantly reducing short-term capital investment requirements.
“Canopy is maturing as a consumer product company – leveraging our market focus, innovation, and R&D strength to produce cannabis and cannabinoid-based products that make a positive impact on consumers lives,” said David Klein, CEO, Canopy Growth.
“We remain committed to serving the medical cannabis market as a channel and will continue to do so by leveraging our existing high-quality supply of Canadian cannabis products to meet patient demand globally. I would like to thank the C³ team members for their hard work, dedication, and commitment to building the successful business that C³ is today.”
An upfront payment of C$115.5M will be made upon the closing of the transaction, anticipated to take place by January 31, 2022.
Canopy Growth will also be eligible to receive an earnout payment of up to $C61.4M subject to the achievement of select milestones by the C³ business.
All C³ employees will be retained by Dermapharm following the closing of the transaction.
Canopy Growth is a cannabis and cannabinoid-based consumer product company that cultivates and sells medicinal and recreational cannabis.
Canopy Growth stock is down 0.923 per cent on the day, trading at $11.81 per share at 11 am EST.
