SMITHS FALLS, ON, Nov. 28, 2016 /CNW/ - Canopy Growth Corporation
("Canopy Growth" or the "Company") (TSX:
CGC) today announced that it has entered into an
agreement to acquire MedCann GmbH Pharma and Nutraceuticals
(MedCann), a German-based pharmaceutical distributor who has
successfully placed Tweed-branded cannabis strains in German
pharmacies.
MedCann has proven its ability to navigate the complex
regulatory environment for cannabis importation and distribution in
Germany. With a highly experienced
leadership team, led by Dr. Pierre
Debs, it has established itself as a leading cannabis
importer and distributor within Germany where the cannabis industry still
relies solely on imported products.
"Germany has begun a process of
enabling medical access to cannabis and through a policy that
recognized Canopy as the first legal supply source from
North America," said Bruce Linton, Chairman and CEO of Canopy Growth
Corporation. "This acquisition establishes a distinct and purely
medicinal corporate entity that helps us today but also positions
us for domestic medicinal production inside Germany if the regulatory environment
shifts."
The various production sites within Canopy have developed a
track record of producing consistent strains that yield reliable
cannabinoid profiles harvest over harvest, a federal requirement
for cannabis exports entering Germany. At this time, Tweed is capable of
producing numerous stabilized strains and will position MedCann
well in this market. Bedrocan Canada products will not be provided
to the German market due to license restrictions.
"Germans need access to high-quality cannabis and Tweed's
products are proving to be up to the very strict standards set by
the federal government," said Dr. P. Debs, founder of Medcann.
"Working together as one team will allow Canopy Growth through
Tweed, Tweed Farms, and future production sites to supply the unmet
demand that has been building over the past decade."
Germany permitted patient
access to medical cannabis in 2005. No domestic production
currently exists with cannabis imports currently from Canada and Holland.
The acquisition is structured against certain licensing
milestones that will move the Company towards domestic production
opportunities. 674,631 common shares in the Company will be issued
to MedCann upon the closing of the transaction. A further 367,981
commons shares in the Company will be issued on the 18-month
anniversary of obtaining an Import and Distribution License
from the German Health Minister. A further 122,660 common shares in
the Company will be issued to MedCann principal upon achieving
certain other milestones within two years of closing the
transaction.
This incentivized structure, combined with Canopy Growth's
experience establishing and expanding upon licensing form the
foundation of a strong early market position in Europe's largest economy.
The acquisition is subject to the approval of the Toronto Stock
Exchange.
Here's to Future Growth.
About Canopy Growth Corporation
Canopy Growth is publicly traded on the TSX and a leading
diversified producer of medical cannabis through its wholly owned
subsidiaries Tweed, Bedrocan Canada, and Tweed Farms. The Company
operates a collection of diverse brands and curated strain variety,
supported by over half a million square feet of indoor and
greenhouse production capacity.
About MedCann GmbH Pharma and Nutraceuticals
MedCann GmbH was founded in June 2015
by Dr. Pierre Debs and Rainer Hofmann. MedCann GmbH is an importer,
manufacturer and distributor of medical cannabis products and is
federally licensed by the German Heath Ministry. Dr. Debs is a stem
cell biologist with over 25 years research experience at world
class research universities in the US and Europe. Rainer
Hofmann is a successful businessman having established and
directed a variety of businesses in the Heidelberg area for over 20 years. MedCann
GmbH operates under strict GMP and GDP guidelines for all aspects
of sourcing, transporting and releasing medical cannabis
products.
Forward-Looking Statements
This news release contains forward-looking statements. Often, but
not always, forward-looking statements can be identified by the use
of words such as "plans", "expects" or "does not expect", "is
expected", "estimates", "intends", "anticipates" or "does not
anticipate", or "believes", or variations of such words and phrases
or state that certain actions, events or results "may", "could",
"would", "might" or "will" be taken, occur or be achieved.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of Canopy Growth Corporation, Tweed
Inc., Tweed Farms Inc. or Bedrocan Canada Inc. to be materially
different from any future results, performance or achievements
expressed or implied by the forward-looking statements. The
forward-looking statements included in this news release are made
as of the date of this news release and Canopy Growth does not
undertake an obligation to publicly update such forward-looking
statements to reflect new information, subsequent events or
otherwise unless required by applicable securities legislation.
Neither the Toronto Stock Exchange nor its Regulation Services
Provider (as that term is defined in policies of the Toronto Stock
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
SOURCE Canopy Growth Corporation