SMITHS FALLS, ON, April 3, 2017 /CNW/ - Canopy Growth Corporation
(TSX: WEED) ("Canopy Growth" or "the Company"), is pleased to
announce that the Company has entered into an agreement to acquire
rTrees Producers Limited ("rTrees") ("the Agreement"). rTrees is a
late-stage ACMPR applicant based in Yorkton, Saskatchewan.
Leveraging the award-winning emerging global brand, Tweed, and
paying tribute to the vast prairie grasslands, rTrees will operate
as Tweed Grasslands, producing high quality Western-grown products
to support the Tweed brand and the new flagship Tweed Main Street
online store.
"Finding the right opportunity to expand our footprint to
Western Canada has been an
important priority for our team," said Bruce Linton, Chairman & CEO, Canopy Growth.
"We are proud to bring the Tweed reputation for high quality
cannabis and engaging customer care to Western Canada, partnering with some of the
early pioneers in Canada's legal
medical cannabis system."
Tweed Grasslands brings under the canopy a 90,000 sq. ft
state-of-the-art indoor growing facility that is presently 20%
built-out and serviced by low cost energy and water infrastructure.
A pre-license inspection, one of the last steps in the licensing
process, was conducted by Health Canada in March 2017. Sitting on over 11 acres, it is
estimated that the Tweed Grasslands facility can expand to over
300,000 sq. ft. in the future. Tweed Grasslands also adds a
talented team, all with Western Canadian roots, that have been
involved in the federally regulated cannabis space for the last
seventeen years.
"We are excited to be joining forces with Canopy Growth, a
company that shares our vision for the future of cannabis," said
Andrew MacCorquodale, President
& CEO, rTrees. "By merging our skills and experience with the
proven operational expertise of Tweed, we will be in a great
position to ensure that consumers from Western Canada have reliable access to
high-quality, locally grown and produced products from a recognized
global brand."
The Company continues to view capacity enhancements as a core
aspect of building on its leadership position in the expanding
medical cannabis market. With a pending domestic recreational
market in Canada as well as
increasingly more medical cannabis opportunities internationally,
this acquisition supports capacity requirements by adding
substantially to the Company's existing growing platform.
The acquisition is subject to approval by the Toronto Stock
Exchange and by rTrees shareholders at an upcoming special
shareholder meeting. Upon the signing of the Agreement,
rTrees shareholders representing ownership of [82] % of the
shares of rTrees, have entered into irrevocable lock-up agreements
in favour of the transaction. The acquisition is expected to close
on or about May 1, 2017.
On closing, the Company will issue 698,901 common shares and up
to another 2,795,604 common shares will be held in escrow and
issued if, and when, specific licensing and capacity expansion
related milestones are achieved, for a total of up to 3,494,505
shares on successful completion of all milestones.
Here's to Future (Grasslands) Growth.
About Canopy Growth Corporation
Canopy Growth is a world-leading diversified cannabis company,
offering diverse brands and curated cannabis strain varieties in
dried and oil extract forms. Through its wholly‑owned
subsidiaries, Canopy Growth operates numerous state-of-the-art
production facilities with over half a million square feet of
indoor and greenhouse production capacity. Canopy Growth has
established partnerships with leading sector names
in Canada and abroad. For more information
visit www.canopygrowth.com.
Notice Regarding 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., Mettrum Health Corp., or Bedrocan Canada
Inc. to be materially different from any future results,
performance or achievements expressed or implied by the
forward-looking statements. Examples of such statements include
future operational and production capacity, the impact of enhanced
infrastructure and production capabilities, and forecasted
available product selection. The forward-looking statements
included in this news release are made as of the date of this news
release and Canopy Growth Corp. 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 TSX Exchange nor its Regulation Services Provider
(as that term is defined in policies of the TSX Exchange) accepts
responsibility for the adequacy or accuracy of this release.
SOURCE Canopy Growth Corporation