Impact of Dispute on Canopy Growth and its Customers to be
Negligible
SMITHS FALLS, ON, July 14, 2017 /CNW/ - Bedrocan Canada Inc.
("Bedrocan Canada"), a wholly-owned subsidiary of Canopy Growth
Corporation ("Canopy Growth" or the "Company") (TSX: WEED) has
commenced arbitration proceedings against Bedrocan International BV
("Bedrocan International" or the "Licensor") seeking performance of
Bedrocan International's contractual obligations under the
licensing and distribution agreement between the parties (the
"LDA").
Bedrocan Canada asserts the Licensor has withdrawn and/or
withheld services, designs, and support contrary to the Licensor's
contractual obligations. Because of this, and due to the fact
that Bedrocan International procedures cannot be altered
independently of the Licensor, Bedrocan Canada is now seeking
redress through the process set out in the LDA.
Canopy Growth, then operating as Tweed Marijuana Inc., completed
its acquisition of Bedrocan Canada in August
2015. The acquisition was made in order to diversify the
growing platform and brand identities held by the Company. Since
this time, Canopy Growth has added a substantial number of brands
and growing capacity to its platform. Through this process of
expansion, Bedrocan Canada operations have diminished as a
percentage of total capacity and brand equity within the Canopy
Growth family of companies.
"Canopy Growth has established itself as a global leader in
cannabis production, research, and physician education. We will
continue our aggressive expansion efforts based on the operational
knowhow developed at the Tweed, Tweed Farms, and Mettrum
facilities. Seeking redress through an arbitration process is
necessary to ensure that the Bedrocan Canada asset is maximized for
shareholders and operating at maximum efficiency for the good of
patients," said Bruce Linton,
Chairman and CEO.
In spite of the Licensor's inaction, Canopy Growth has
consistently met its contractual obligations as a licensee. The
licensed facility operating as Bedrocan Canada remains and will
remain an operating asset of Canopy Growth.
The Company is hopeful that with the assistance of arbitration
Bedrocan International will comply with its contractual obligations
to support its intellectual property with the hope of achieving a
greater level of efficiency, reliability and standardization that
have become the benchmark of Canopy Growth operations.
As this matter is now being arbitrated, the Company will offer
no further comment at this time.
Here's to Future Growth
About Canopy Growth Corporation
Canopy Growth is a
world-leading diversified cannabis company, offering distinct
brands and curated cannabis varieties in dried, oil and capsule
forms. Through its wholly‑owned subsidiaries, Canopy Growth
operates numerous state-of-the-art production facilities with over
half a million square feet of GMP-certified indoor and greenhouse
production capacity, all to an unparalleled level of quality
assurance procedures and testing. Canopy Growth has established
partnerships with leading sector names in Canada and abroad, with interests and
operations spanning four continents. The Company is proudly
dedicated to educating healthcare practitioners, providing
consistent access to high quality cannabis products, conducting
robust clinical research, and furthering the public's understanding
of cannabis. 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