Announcement pairs Canopy Growth's industry leading experience
with regional expertise and strategic operations
SMITHS FALLS, ON and
BOGOTA, Colombia, July 5, 2018 /CNW/ - Canopy Growth
Corporation ("Canopy Growth" or the "Company") (TSX: WEED)
(NYSE:CGC) is proud to introduce its Latin American affiliate
Canopy LATAM Corporation ("Canopy LATAM"), a wholly owned and
controlled subsidiary of Canopy Growth Corporation. Through Canopy
LATAM, the Company has acquired Spectrum Cannabis Colombia S.A.S.
("Spectrum Cannabis Colombia"), which previously operated as
Colombian Cannabis S.A.S. ("Colombian Cannabis"), expanding the
Company's focus on the emerging medical cannabis market of
Latin America.
Canopy LATAM will advance medical cannabis throughout
Latin America
This announcement represents a leap forward in the Company's
growth strategy for its industry leading Spectrum Cannabis brand.
As a member of the Canopy Growth family, Canopy LATAM will focus on
advancing medical cannabis and capturing market share across the
region, home to more than 600 million people, as individual nations
modernize their medical cannabis legislation.
Canopy LATAM will be led by Antonio
Droghetti as Regional Managing Director, a seasoned
executive with extensive experience throughout Latin America. Antonio has previously served
as a senior leader for the Grupo Silvio Santos, Managing Director
of Inframérica, concessionaire of the airport of Brasilia, and CEO of Lifemed, a company that
develops products for hospitals and the healthcare sector. Canopy
LATAM has already hired a seasoned team of senior staff to drive
the continental strategy forward. This team will oversee in-market
entities from across the region and management believes it will
position the Company as the leading cannabis focused healthcare
organization in Latin America.
Canopy LATAM will work closely with Canopy Growth Chief Medical
Officer Dr. Mark Ware to build the
necessary global clinical program to ensure expeditious entry into
these markets. To support his long-term leadership and reflecting
the potential for growth across the region, Canopy LATAM will also
acquire all of the issued and outstanding shares of Canindica
Capital Ltd ("Canindica"), a company controlled by Antonio Droghetti.
And, introducing the newest member of the family, Spectrum
Cannabis Colombia
Colombian Cannabis, holder of all required national licenses for
the production, manufacturing, and export of cannabis derivatives,
has joined the Canopy Growth family as Spectrum Cannabis Colombia.
The company will continue to be led by Bibiana Rojas, a proven Colombian executive, MBA
graduate from the Wharton School at the University of Pennsylvania, and former Boston
Consulting Group project leader.
With its headquarters in the rich agricultural state of Huila,
which averages more than 280 sunny days per year, Spectrum Cannabis
Colombia will serve as a regional production and processing hub for
Canopy LATAM. Further, Spectrum Cannabis Colombia owns a
uniquely-positioned 126 hectare farm suitable for growing and
future operations. This site receives a steady supply of fresh
water from a natural lagoon, has favourable electricity rates, and
is currently licensed for 42 hectares (4.5 million sq. ft.) of
production capacity for both psychoactive and non-psychoactive
(<1% THC) cannabis.
Leveraging the experience of Canopy Growth, Spectrum Cannabis
Colombia will build the necessary facilities to provide for
value-added production and sales in Colombia and the broader region, with all
products produced intended for regional markets in Latin America. Construction is expected to
commence by the end of summer 2018 and be complete within twelve
months.
Colombia has a proud history of
agricultural production and global leadership, from coffee to cacao
to roses to orchids, and thanks to progressive cannabis
legislation, it is strategically positioned to serve as Canopy
Growth's production, processing, and export hub for Latin America with its operations central to
the growth strategy for Canopy LATAM.
Announcement builds on existing research activity lead by
Spectrum Cannabis Chile
Chile is well known throughout
Latin America for its progressive
approach to research and development and Spectrum Cannabis Chile
will operate as part of the broader LATAM structure, to ensure that
the clinical and market access work already underway in the country
for several years can be leveraged into expeditious market access.
This further supports the Company's strategy of focused in-market
entities that leverage the unique benefits of each nation.
Advancing Canopy Growth's operations in Brazil
In line with the significant potential of the region as a whole,
Canopy LATAM will advance the organization's strategy for
Brazil, the continent's largest
country with over 200 million inhabitants.
Initially focused on medical cannabis research, the Brazilian
in-market entity will also be led by Antonio Droghetti, Regional Managing Director,
Canopy LATAM. Through his experience in building and growing
businesses within the country, including in the healthcare sector,
Antonio will manage a team focused on the Brazilian market and will
direct engagement with regulators.
As the country reviews its medical cannabis legislation, Canopy
LATAM will position itself to meet future demand for medical
cannabis in this high potential market.
A regional strategy for global
success
Management believes the Company is positioned for success with a
rapidly evolving Latin American operation built on the progressive
regulatory environment and unique natural growing climate of
Colombia, paired with R&D
emanating from Chile, and regional
oversight from Canopy LATAM to build numerous markets across South
and Central America. As other
Latin American nations update their regulations related to medical
cannabis, Canopy LATAM will identify opportunities and actively
pursue local operations as part of a focused regional growth
strategy while ensuing patients have access to high quality,
regulated medical cannabis.
Quotes from leadership
"Today is a historic day for Canopy Growth and a victory for
patients across Latin America as
we take a leap forward in the future of medical cannabis across the
region," said Mark Zekulin,
President and Co-CEO, Canopy Growth. "Sustainable regional
production coupled with focused in-market entities led by seasoned
regional executives is our winning formula, and the launch of
Canopy LATAM represents another successfully executed step in our
ambitious global growth strategy."
"I'm proud to join the Canopy Growth family and look forward to
growing Canopy LATAM into the leading cannabis focused healthcare
provider in Latin America," said
Antonio Droghetti, Regional Managing
Director, Canopy LATAM. "Our region has incredible potential and a
real need for controlled, high quality medical cannabis. Leveraging
the experience of Canopy Growth and the regional expertise of our
country leaders and senior management team, we will collaborate
with regulators and ensure that healthcare professionals and
patients have access to the information and products they
need."
"Thanks to our climate, location, and progressive regulations,
we've believed from the beginning that Colombia was uniquely positioned as a leader
in the region's emerging medical cannabis industry," said
Bibiana Rojas, Managing Director,
Spectrum Cannabis Colombia. "It's a proud day as we join Colombian
expertise with the world leader in medical cannabis. Together, we
can continue to build our Colombian operations with the ambitious
goal of serving as a production and processing hub for all of
Latin America."
The Fine Print
The Company has issued the former shareholders of Spectrum
Cannabis Colombia 1,193,237 common shares in the capital of the
Company on closing valued at $34,832,593.
Upon the satisfaction of four further milestones, the Company
will issue the former shareholders of Spectrum Cannabis Colombia up
to 524,576 common shares in the capital of the Company on the
completion of each milestone. Each of the four milestone payments
is valued at $15,313,255. The maximum
value issuable to the shareholder of Spectrum Cannabis Colombia on
closing and pursuant to the four milestones is $61,253,019.
The Company will issue the shareholders of Canindica, a company
controlled by Antonio Droghetti,
595,184 common shares in the capital of the Company on closing
valued at $18,666,667 based upon the
20 day volume weighted average trading price of the Company's
common shares on the TSX on the date prior to the date of
closing.
Upon the satisfaction of four different milestones, the Company
will issue the shareholders of Canindica additional common shares,
with each milestone valued at $9,333,333 and to be paid out in common shares
based upon the 20 day volume weighted average trading price of the
Company's common shares on the TSX on the date prior to the date
each such milestone is satisfied. The maximum value issuable to the
shareholder of Canindica on closing and pursuant to the four
milestones is $37,333.333.
On July 4, 2023, the Company shall
make an extra payment to those parties who had completed all of
their milestones by that date. Payment will be made in common
shares of the Company based upon the 20-day volume weighted average
trading price of the Company's common shares on the TSX on
July 4, 2023. The Company will issue
the former shareholder of Spectrum Cannabis Colombia common shares
of the Company equal to four percent (4%) of the fair market
value of Canopy LATAM. The Company will issue to Canindica, such
number of common shares of the Company equal to six
percent (6%) of the fair market value of Canopy LATAM.
All amounts are in United
States dollars unless otherwise noted.
Spectrum Cannabis. Medical Cannabis Simplified.
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 ten
licensed 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 ten
countries across five 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 on the Toronto Stock Exchange and New York Stock
Exchange 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
About Spectrum Cannabis
Spectrum Cannabis, a wholly-owned subsidiary of Canopy Growth,
is dedicated to simplifying medical cannabis for patients and
healthcare practitioners. Spectrum Cannabis is an international
medical business which interfaces with healthcare professionals and
patients around the world. Founded in Canada, Spectrum Cannabis operates in
Australia, South America, Africa and across Europe. Spectrum Cannabis products are
available in a wide range of potencies and formats designed to
simplify the dialogue around strength and dosage by applying a
colour-coded Spectrum to categorize medical cannabis according to
THC and CBD levels. Its product lineup includes whole flower
cannabis, oils and new innovations such as Softgels. Through
product simplification, easy dosing formats, in addition to ongoing
education of healthcare professionals, Spectrum is committed to
improving the lives of medical cannabis patients around the
globe.
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 or
its subsidiaries 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 statements with
respect to the Company's focus on Latin
America, the Company's position in the market, the
advancement of medical cannabis internationally, capturing market
share, construction of facilities, leveraging the clinical and
market access work in Chile, the
Company's global growth strategy, the milestone payments and the
identification of new opportunities. 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 the updating of regulations
in individual nations; the completion of construction on facilities
for value added production; the completion of various milestone
events; the ability to integrate the acquired businesses into the
Company's operations; the time and resources of management devoted
to integration and expansion efforts; 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
information or forward-looking information to reflect new
information, subsequent events or otherwise unless required by
applicable securities laws.
SOURCE Canopy Growth Corporation