SMITHS FALLS, ON, July 5, 2018 /CNW/ - Canopy Growth
Corporation ("Canopy Growth" or the "Company") (TSX: WEED) (NYSE:
CGC) is pleased to announce that it has closed its previously
announced transaction (the "Transaction") to acquire the remaining
33% stake of BC Tweed Joint Venture Inc. ("BC Tweed"). The
consolidation of the two largest federally licensed cannabis
facilities in the world into full Canopy Growth ownership cements
the Company's commitment to shareholder value through scale
production.
In connection with the Transaction, Canopy Growth has paid
$1 million in cash as a
non-refundable deposit against the purchase price and has issued
$374 million worth of shares in the
Company to the minority shareholders of BC Tweed (the "Operators")
based on the volume weighted average price per common share for the
20 trading day period ended May 11,
2018 (the "VWAP"). Payments are milestone-based and will be
released over three years based upon the achievement of certain
production milestones.
In addition, the Company will issue $20
million worth of common shares in the capital of the Company
at the same VWAP in connection with an option to acquire certain
future infrastructure from the Operators, subject to certain
conditions.
"Our BC Tweed operations have allowed us to pursue and finalize
large recreational supply contracts across Canada," said Mark
Zekulin, President and Co-CEO, Canopy Growth. "Construction
and retrofitting work continues at both greenhouse sites to
continue on an aggressive pace towards licensing all 3 million sq.
ft. of production."
The BC Tweed greenhouses represent a meaningful share of the
entire Canadian production landscape with up to 3 million sq. ft.
of greenhouse growing capacity. Since the formation of BC Tweed in
October of 2017, already over 1.7 million square feet has been
licensed for production to meet oncoming recreational cannabis
demand across the country.
Certain members of the Operators' management team will continue
on at the sites to drive production of high-quality cannabis and
operational efficiency at scale.
All amounts are in Canadian dollars.
Here's to Future (BC Bud) Growth.
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 icons Snoop Dogg and Organa Brands,
breeding legends DNA Genetics and Green House seeds, and Fortune
500 alcohol leader Constellation Brands. Canopy Growth operates
eight cannabis production sites with over 2.4 million square feet
of production capacity, including over 500,000 square feet 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
Notice Regarding Forward Looking Statements
This news release contains "forward-looking statements" within
the meaning of the United States Private Securities Litigation
Reform Act of 1995 and "forward-looking information" " within the
meaning of applicable Canadian securities legislation. Often, but
not always, forward-looking statements and 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 statements or information involve known
and unknown risks, uncertainties and other factors which may cause
the actual results, performance or achievements of Canopy Growth,
BC Tweed or the Company's subsidiaries or affiliates to be
materially different from any future results, performance or
achievements expressed or implied by the forward-looking statements
or information contained in this news release. Examples of such
statements include the future operational, production and licensing
capacity and the ongoing involvement of certain members of the
Operator's management team. Risks, uncertainties and other factors
involved with forward-looking information could cause actual
events, results, performance, prospects and opportunities to differ
materially from those expressed or implied by such forward-looking
information, including risks associated with changes in general
economic, business and political conditions, including changes in
the financial markets; changes in applicable laws; compliance with
extensive government regulation; diversion of management time on
the integration of the business; and such risks contained in the
Company's annual information form dated June
28, 2018 and filed with Canadian securities regulators
available on the Company's issuer profile on SEDAR at
www.sedar.com. Although the Company believes that the assumptions
and factors used in preparing the forward-looking information or
forward-looking statements in this news release are reasonable,
undue reliance should not be placed on such information and no
assurance can be given that such events will occur in the disclosed
time frames or at all. The forward-looking information and
forward-looking statements included in this news release are made
as of the date of this news release and the Company does not
undertake an obligation to publicly update such forward-looking
statements or forward-looking information to reflect new
information, subsequent events or otherwise unless required by
applicable securities laws.
SOURCE Canopy Growth Corporation