SMITHS FALLS, ON and
FREDERICTON, NB, Aug. 28, 2017 /CNW/ - Canopy Growth Corporation
("Canopy Growth" or the "Company") is pleased to announce that it
has acquired Spot Therapeutics Inc. ("Spot"), an ACMPR applicant
based in Fredericton, New
Brunswick. Additionally, through an affiliated entity, the
Company has entered into a definitive agreement to complete the
previously announced purchase of the industrial building and
property where the Company's Fredericton-based production and distribution
platform is being established. These strategic acquisitions
solidify Canopy Growth's commitment to expand operations into
New Brunswick with a large-scale
indoor production facility both quickly, and cost efficiently.
"New Brunswick has emerged as
an excellent place to do business in the cannabis sector," said
Bruce Linton, Chairman and CEO,
Canopy Growth. "We will leverage our existing operational expertise
and supplement what the team at Spot has already started so that we
can get this facility up and running quickly, supporting local
construction and trades to ensure we're making a meaningful
contribution to the local economy."
The facility will operate under the Tweed brand and support the
Company's global operations with high quality, large scale cannabis
production capabilities. The existing building and infrastructure
is in excellent condition and includes almost 40,000 sq. ft. of
dedicated production space. Once licensed, this initial footprint
is anticipated to produce over 4,000 kg of dried cannabis annually.
With the property appropriately zoned and suited for expansion to
over 100,000 sq. ft., this location creates an ideal platform for
future growth.
On behalf of Bird Holdings Ltd., the current owner of the
facility, its President J.W. Bud
Bird said, "We are pleased by the sale of our building and
impressed with the major expansion initiatives that the new owner,
Canopy Growth, has planned for the property. It is great to have an
investment of such a magnitude coming to Fredericton's Industrial Park, and it should
prove to be an important long-term source of jobs and economic
activity for all of central New
Brunswick."
Since originally announcing the intent to purchase the facility,
Canopy Growth has been working diligently on amendments to the
existing application to conform with the Company's standardized
infrastructure layout and operating procedures. Engineering plans
and drawings have already been completed and construction on the
facility should begin in October
2017. The facility is anticipated to be ready for licensing
and production before the end of 2017.
Brian Neill, CEO of Spot
commented, "We have been working for years to bring this new
industry to Fredericton, and are
proud to be joining forces with Canopy Growth and Tweed as we
continue our journey towards an ACMPR license and the launch of a
new cannabis platform in the Maritimes."
Under the terms of the transaction, shareholders of Spot will
receive up to $2,250,000 in total
consideration, less adjustments for all liabilities of Spot as of
the closing date and certain payments to be made by Spot between
closing and the second tranche payment. At closing, and in
satisfaction of the first tranche payment of $1,000,000, Canopy issued 111,669 common shares
to the shareholders of Spot. The second tranche payment will be
satisfied by the issuance of additional common shares, subject to
completion of certain licensing and operational milestones. Closing
of the acquisition of the industrial building and property in
Fredericton is anticipated to
close in early September.
On August 25th, 2017,
Canopy Growth received conditional approval from the TSX for the
issuance of common shares in connection with this transaction.
Here's to Future (Maritime) Growth.
About Tweed
Tweed is a globally recognized marijuana production brand. It has
built a large and loyal following by focusing on quality products
and meaningful customer relationships. Tweed doesn't just sell
marijuana, it facilitates a conversation about a product we've all
heard about but haven't met intimately yet. It is approachable and
friendly, yet reliable and trusted. As marijuana laws liberalize
around the world, Tweed will expand its leading Canadian position
around the globe. Learn more at www.tweed.com.
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 Information
This news release contains forward-looking information. Often, but
not always, forward-looking information 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 information involves 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., Bedrocan Canada Inc.
or Spot Therapeutics Inc. to be materially different from any
future results, performance or achievements expressed or implied by
the forward-looking information contained in this news release.
Examples of such statements include future operational and
production capacity, closing of the acquisition of the industrial
building and property in Fredericton, the impact of enhanced
infrastructure and production capabilities, timing to begin
construction at the facility and the timeline for licensing and
production, and the second tranche payment to the shareholders of
Spot. The forward-looking information 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 information 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