SMITHS FALLS, ON, Oct. 15, 2018 /CNW/ - Canopy Growth
Corporation ("Canopy Growth" or the "Company") (TSX: WEED) (NYSE:
CGC) today announced that it has entered into an agreement to
acquire the assets of ebbu, Inc. ("ebbu"), an Evergreen, Colorado-based hemp research
leader. The transaction will complement and accelerate multiple
core verticals operating under Canopy Growth's group of
companies.
Intellectual Property ("IP") and R&D advancements achieved
by ebbu's team apply directly to Canopy Growth's hemp and THC-rich
cannabis genetic breeding program and its cannabis-infused beverage
capabilities. In addition, ebbu's IP portfolio will contribute to
the clinical formulations program being executed by Canopy Health
Innovations, a wholly owned subsidiary of the Company. Canopy
Growth operates a rapidly emerging, field-scale hemp operation
based in Saskatchewan and by
applying ebbu's IP, the Company has the potential to vastly reduce
the cost of CBD production, a sought-after cannabinoid in both the
wellness and medical spaces.
"Beyond the technological edge this transaction provides, we are
pursuing this acquisition because Canopy shares ebbu's core ethos
of building consumer trust," said Mark
Zekulin, Co-CEO & President, Canopy Growth. "We
collectively believe consumer trust is achieved by driving the
scientific agenda needed to build predictable, repeatable outcomes
and layering on brand power."
Staying with Canopy Growth's long-held position surrounding
business operations in the United
States, this transaction would not have been pursued were it
not in clear accordance with current US federal law. Canopy Growth,
through a newly formed subsidiary, will employ ebbu's assets and
personnel to conduct R&D. There will be no production or sale
of products resulting from such R&D in the United States unless and until it would be
federally legal to do so.
The same technology platform can be utilized to produce other
novel cannabinoids at scale and continue the process of unlocking
the potential of lesser-understood elements in the cannabis plant,
with the IP also being deployed at Canopy's Smiths Falls-based research facilities.
At closing, Canopy Growth will pay CDN$25
million in cash and issue 6,221,210 Company common shares
("shares") to ebbu in exchange for the assets being acquired. Up to
a further CDN$100 million in purchase
price shall be payable if certain scientific related milestones are
achieved within two years following closing. Canopy Growth
will have the option of satisfying such milestone payments in cash,
shares or a combination of cash and shares. If such payments
are satisfied in shares, the number of shares shall be calculated
based on the volume weighted average price of the shares on the TSX
for the 20 trading days immediately prior to the date of
achievement of the applicable milestone.
The transaction requires regulatory approval, including
approvals by the Toronto Stock Exchange and New York Stock Exchange
and will give rise to ongoing disclosures required by CSA Staff
Notice NI 51-352 for US transactions. The asset acquisition is
anticipated to close in November
2018.
Here's to Future (IP) 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. The Company has
operations in 12 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. 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
4.3 million square feet of production capacity, including over
500,000 square feet of GMP certified production space. 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 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 closing of the proposed acquisition, the expected
timing of closing, the milestone payments, the activities to be
carried on by the Company and its subsidiaries using the acquired
assets and the benefits to the Company anticipated from the
acquisition. 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 risk that the parties may not be able to satisfy the
closing conditions within the time frames anticipated or at
all, the R&D to be conducted by the Company using the
acquired assets may not have the anticipated results , and the
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