Canopy Growth, Organa Brands, Green House Seeds Collaborate
to Bring New Products to Canadian Market and Beyond
Green House Holdings North America Inc. (“Green House”),
its affiliate in the Netherlands, GHSC Trading B.V., National
Concessions Group Inc. (“Organa Brands”) and Canopy Growth
Corporation (“Canopy Growth” or “the Company”)
(TSX:WEED), together three of the most storied and successful
global cannabis businesses, are pleased to announce the planned
creation of a collaborative joint venture (the “JV”).
This press release features multimedia. View
the full release here:
http://www.businesswire.com/news/home/20171117005158/en/
To establish the JV, Canopy Growth will allocate a portion of
ownership in ACMPR-licensed Agripharm Corp. (“Agripharm”), a 20,000
sq. ft. indoor growing facility located in Creemore, Ontario, to
its new partners. Canopy Growth will retain 40% ownership of
Agripharm, while Green House and Organa Brands will own 40% and
20%, respectively, of Agripharm. In exchange for the issuance of
shares, Green House and Organa Brands have granted an exclusive,
royalty-free licence in Canada to certain proprietary technology,
trademarks, genetics, know-how and other intellectual property to
Agripharm, subject to compliance with applicable law.
The JV will create a new Canadian home-base for Green House and
Organa Brands where they will work together with Canopy Growth to
produce cannabis products for the Canadian market. Pursuant to the
JV, the Company has the right to purchase all of the cannabis
products produced by Agripharm to be exclusively distributed via
Canopy Growth’s national channels, subject to limited exceptions.
In addition, the Company will sublicense the proprietary
technology, trademarks, genetics, know-how and other intellectual
property from Agripharm in order to ensure that Canopy Growth is
able to satisfy consumer demand across Canada for the suite of
Green House and Organa Brands products.
Although Agripharm is focused on the Canadian market, Canopy
Growth, Green House, Organa Brands and their respective affiliates
will also explore other federally-legal international opportunities
as they arise, including with respect to medical research and
development opportunities, product distribution platforms, and
brick-and-mortar retail locations. Agripharm will not conduct any
business in the United States.
“Our business has separated itself from the competition by
focusing on brands and products that resonate with people but also
because we’ve found creative ways to collaborate with like-minded
businesses to increase the breadth of our product offering,” said
Mark Zekulin, President, Canopy Growth. “From world-class breeders
like our partners DNA Genetics and now Green House Seeds, to sector
innovators like Organa Brands, to cultural icons like Snoop Dogg,
we work with the best in order to bring the best possible cannabis
forward to our customers.”
The JV is expected to close on or about December 1, 2017.
Operationally, Canopy Growth will transfer oversight to its new
collaborators who will operate a pristine licensed facility with
modular growing rooms designed to produce only the very best
cannabis flowers. Green House will oversee day-to-day operations
and bring their own expertise into cultivation, while Organa will
implement world-class extraction functions as new and novel
value-add products become part of the regulatory environment.
Canopy Rivers Corporation, a partly-owned subsidiary of Canopy
Growth, has also entered into an agreement to provide the JV with
up to $20 million in funding for the expansion of the facility in
exchange for ongoing royalty payments and a warrant to acquire up
to 4% of the issued and outstanding common shares.
"For 30 years Green House Brands has been at the forefront of
cannabis legalization by advocating for its normalization and
expansion into new territories," said Arjan Roskam, the founder of
Green House Brands. "We're now operating in four continents
(Europe, Africa, South America and North America) and thanks to
this new partnership with these two prominent market leaders in the
industry, Canopy and Organa Brands, we will create even more
opportunities globally to help the world access cannabis in a legal
way. This epic move will allow us to maintain our position as a
world leader in genetics and cannabis retail, while alerting the
cannabis consumer that we will continue striving to make cannabis
available worldwide for all medicinal and recreational consumers
one day."
Canopy Growth, Green House, and Organa Brands each bring a
unique set of skills that are strategically complementary to one
another. Canopy Growth has built an online distribution platform
that touches every province and territory in Canada as well as 7
international markets; Green House is a genetic leader that has
bred some of the world’s most sought-after strains; and Organa
Brands is an extract product innovator. Together, the JV is
positioned to take sought after genetics, insert those genetics
into consumer-friendly ingestion formats, and put them on stores
shelves across the country, and abroad.
"We are incredibly excited about this new partnership - since
the inception of Organa Brands, one of the key tenets of our
business has been forming smart partnerships with mutually
beneficial results. Working with Canopy and Green House has been a
surreal moment as we continue to fully recognize the impact of what
this deal means for the industry as a whole," said Organa Brands
Co-Founder, Jeremy Heidl. "We couldn't have asked for better
partners in Canada and beyond - this new global partnership will
prove to be a defining moment for all parties involved."
Cassels Brock & Blackwell LLP acted as legal counsel to
Canopy Growth with respect to the JV, Dentons Canada LLP acted as
legal counsel to Green House, and Stikeman Elliott LLP acted as
legal counsel to Organa Brands.
For more information on this new partnership click here.
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.
About Green House Holdings North America Inc.
Green House Brands is bringing the most awarded and recognized
cannabis brand in the world to the North American market.
Established in 1985 in Amsterdam, the Green House Brands portfolio
includes five leading marijuana businesses — Strain Hunters, Green
House Seed Co., Green House Feeding, Green House Coffee shops &
King of Cannabis — as seen on VICE & National Geographic. Green
House assets have won the company numerous accolades, including
over 40 High Times Cannabis Cups and 200+ awards for top genetics,
establishing the company’s leadership in the global cannabis
industry. Green House was a pioneer in the development of the
European cannabis coffee shop market, where its Green House Coffee
shops in the Netherlands and Strain Hunters Clubs in Spain remain
market leaders. As Strain Hunters, the company has been featured in
documentary series on HBO and VICE, highlighting its globetrotting
journeys to find the rarest landrace strains of cannabis. Green
House and Strain Hunters media has over 150M views and has one of
the most powerful marketing platforms in the industry. Green House
enters the rapidly developing legal North American cannabis markets
with all of its enterprises. For more information please visit
www.greenhousebrands.com.
About Organa Brands
Organa Brands revolutionized the cannabis industry with the
introduction of supercritical CO₂ extracted cannabis oil in 2010
and the introduction of the groundbreaking O.penVAPE device in
2012. Today, the company is home to the world's largest consumer
cannabis brands. After developing O.penVAPE, Bakked, and Organa
Labs into world-class brands with nationwide distribution, the
company acquired The Magic Buzz, and entered into a joint venture
to form District Edibles. Organa Brands sells one of its products
every 4 seconds around the world, and has delivered over one
billion puffs through its flagship O.penVAPE line. A brand
incubator and pioneer in the cannabis space, Organa Brands utilizes
its 12 production facilities in 11 states and Jamaica to
manufacture its extensive catalog of products. Organa Brands sells
its cannabis products in over 1,200 retail locations with ancillary
hardware sold in thousands of retailers globally – making it the
largest cannabis-oil-based consumer products company in the United
States. Agripharm – a joint venture between Organa Brands, Canopy
Growth Corporation (TSX: WEED), and the world-renowned Green House
Seed Company – ushers in a new era of international distribution
for the three brand powerhouses. Organa Brands is committed to
dominating the global cannabis market through the marriage of
science and technology, all for the benefit of the consumer. For
more information, please visit www.OrganaBrands.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, its subsidiaries or
the JV 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 the issuance of additional
common shares, the contribution to be made by Green House and
Organa Brands, the purchase of cannabis products by Canopy Growth
from Agripharm, the Company’s expectations about its positioning
and branding in the Canadian market, the Company’s collaborative
efforts with Green House and Organa Brands internationally, and the
expansion of the Agripharm facility. 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:
timelines for expansion, including with respect to construction and
Health Canada’s approval process; availability of additional
financing; third-party and regulatory approvals; and such risks
contained in the Company’s annual information form dated June 28,
2017 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 in this press 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
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 to reflect new
information, subsequent events or otherwise unless required by
applicable securities legislation.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20171117005158/en/
Canopy Growth Contacts:Jordan Sinclair,
613-769-4196Director of
CommunicationsJordan@canopygrowth.comorInvestor RelationsTyler
Burns, 855-558-9333 ex 122Tyler.burns@canopygrowth.comorOrgana
Brands Contact:Jackson D. Tilley, 970-518-6452Director of
Public Relations & Community
AffairsJackson@OrganaBrands.com
Canopy Growth (TSX:WEED)
Historical Stock Chart
From Aug 2024 to Sep 2024
Canopy Growth (TSX:WEED)
Historical Stock Chart
From Sep 2023 to Sep 2024