Canopy Growth on Thursday unveiled a multimillion-dollar plan to enter the Latin America medical cannabis market.
The Smiths Falls, Ontario-based agency has launched a brand new subsidiary, Canopy LATAM Corp., which acquired Spectrum Cannabis Colombia S.A.S for $34.eight million (CA$four.6 million) in Canopy inventory.
The deal has built-in efficiency milestones that, if met, would give the previous shareholders of Spectrum a further $61.2 million in shares, based on a information launch.
The acquisition expands Canopy Growth’s international footprint, which already consists of cannabis operations in Jamaica, Germany, Chile and Denmark. The firm additionally has partnerships underway in Australia and Spain.
Canopy LATAM’s preliminary operations shall be headquartered in Huila, Colombia, the place the agency owns a 300-acre-plus farm of which greater than 100 acres are licensed to supply cannabis. Operations there’ll function the agency’s regional manufacturing and processing hub, the corporate stated.
The new subsidiary will probably be led by Antonio Droghetti, who has been given the title regional managing director. A former CEO of health-care gadget agency Lifemed, Droghetti shall be charged with main Canopy LATAM’s efforts to increase to markets throughout South and Central America.
In different information, Canopy Growth additionally closed on a beforehand introduced deal to accumulate the remaining 33% of a joint cultivation enterprise, BC Tweed, that Canopy established with a greenhouse grower in British Columbia, in line with a information launch. Canopy paid CA$375 million ($285 million) to shut the deal.
BC Tweed at present has 1.7 million sq. ft of greenhouse develop area licensed for cannabis cultivation, out of roughly three million sq. ft of obtainable greenhouse develop area.
In May, Canopy Growth turned the primary plant-touching cannabis agency to be listed on the New York Stock Exchange. The agency trades on the NYSE beneath CGC. The firm additionally trades on the Toronto Stock Exchange as WEED.