Existing Organic Certification for Tomato Production A Key
Differentiator
MIRABEL, QC, Dec. 18, 2017 /CNW/ - Canopy Growth Corporation
(TSX: WEED) ("Canopy Growth" or the "Company") and Canopy Rivers
Corporation ("Canopy Rivers") are pleased to announce a definitive
joint venture agreement to form a new company, Les Serres
Vert Cannabis Inc. ("Vert Mirabel"), together with Les
Serres Stéphane Bertrand Inc. ("Bertrand"), a large-scale tomato
greenhouse operator in Mirabel,
Quebec.
Bertrand currently produces
tomatoes and other vegetables under 700,000 sq. ft. of modern
greenhouse, most of which was built in 2015. The entire
greenhouse will be upgraded and retrofitted for cannabis production
by April 2018. With the assistance
and guidance of Canopy Growth, the application for this site has
been submitted; and subject to Health Canada and other standard
regulatory approvals, the Company anticipates being ready to begin
production by May 2018.
Under the terms of the agreement, Vert Mirabel will, subject to
satisfaction of certain conditions, lease the 700,000 sq. ft.
greenhouse facility from Bertrand.
Vert Mirabel will also be provided
with an option to acquire the property.
Vert Mirabel significantly
supplements Canopy Growth's industry leading production portfolio
and positions the company well in Quebec,
Canada's second largest province.
"The joint venture allows us to expand our operational footprint
for greenhouse production, and establish a much larger foothold in
Quebec," said Bruce Linton, Chairman and Chief Executive
Officer, Canopy Growth. "The fusion of Canopy's cannabis expertise
with the greenhouse expertise of Les Serres Stéphane Bertrand is fantastic news for our customers
and investors."
The greenhouse holds a valid Ecocert "organic" certification.
Bertrand has produced organic
tomatoes from the existing infrastructure and can apply their
farming expertise to cannabis production in order to grow organic
cannabis flowers. Vert would be the first Canopy family of brands
to carry organically produced cannabis, another value-add
differentiator to the industries most diverse house of brands.
As consideration for entering into and operating Vert Mirabel,
Canopy Growth will, based upon various milestones and subject to
required regulatory and stock exchange approvals, issue
Bertrand $2.75 million of common shares in four equal
tranches. To fund the development of Vert Mirabel, Canopy Rivers
will contribute, in multiple tranches, an aggregate of $15 million in cash (of which $750,000 was advanced at closing), in exchange
for Class A Preferred Shares with cumulative preferred dividends.
In addition, Canopy Growth has agreed to purchase from Vert Mirabel
all of the cannabis produced during an initial term. Canopy Growth
and Canopy Rivers, combined, own 66.7% of Vert Mirabel, with
Bertrand holding the remaining
33.3%.
Bertrand brings
multi-generational knowledge of greenhouse operations and is
currently the largest producer of Pink Tomatoes in North America. Bertrand is an
experienced large scale, low cost, high-technology, hydroponic
greenhouse operator, with industry leading food safety,
traceability and compliance expertise, and a growing focus on
organic production methods. Bertrand also brings tier one assets and a
highly experienced operations team.
Canopy Growth is committed to building an international business
with a strong national platform while supporting the local
communities where it operates through job creation, meaningful
stakeholder engagement, and local economic opportunity.
Media are invited to attend a press conference in the Boutique
at Les Serres Bertrand with Stéphane Bertrand, CEO, and Adam Greenblatt, Quebec
Brand Manager for Canopy Growth, on December
18th, 2017 from 11 am –
12 pm. Location: 11730
Route Sir Wilfrid Laurier, Mirabel,
QC J7N 1P5.
Poussons vert l'avenir
About Canopy Growth Corporation
Canopy Growth is a
world-leading diversified cannabis and hemp company, offering
distinct brands and curated cannabis varieties in dried, oil and
Softgel capsule forms. From product and process innovation to
market execution, Canopy Growth is driven by a passion for
leadership and a commitment to building a world-class cannabis
company one product, site and country at a time.
Canopy Growth has established partnerships with leading sector
names including cannabis icon Snoop Dogg, breeding legends DNA
Genetics and Green House seeds, and Fortune 500 alcohol leader
Constellation Brands, to name but a few. Canopy Growth operates
seven cannabis production sites with over 665,000 sq. ft. of
production capacity, including over 500,000 sq. ft. of
GMP-certified production space. The Company has operations in seven
countries across four continents. The Company is proudly dedicated
to educating healthcare practitioners, conducting robust clinical
research, and furthering the public's understanding of cannabis,
and through its partly owned subsidiary, Canopy Health Innovations,
has devoted millions of dollars toward cutting edge,
commercializable research and IP development. Through partly owned
subsidiary Canopy Rivers Corporation, the Company is providing
resources and investment to new market entrants and building a
portfolio of stable investments in the sector. From our historic
public listing to our continued international expansion, pride in
advancing shareholder value through leadership is engrained in all
we do at Canopy Growth. For more information visit
www.canopygrowth.com
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future operational and production capacity, the impact of enhanced
infrastructure and production capabilities, and forecasted
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SOURCE Canopy Growth Corporation