Ottawa-area pot producer Canopy Growth to buy German distributor MedCann
Canopy Growth Corp. has agreed to buy pharmaceutical distributor MedCann, placing the marijuana company's Tweed-branded cannabis strains in German pharmacies.
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Canopy Growth Corp. of Smiths Falls, Ont., has an agreement to buy pharmaceutical distributor MedCann, which has placed the Canadian marijuana company's Tweed-branded cannabis strains in German pharmacies.
"Germany has begun a process of enabling medical access to cannabis and through a policy that recognized Canopy as the first legal supply source from North America," said Canopy chairman and CEO Bruce Linton in a statement.
"This acquisition establishes a distinct and purely medicinal corporate entity that helps us today but also positions us for domestic medicinal production inside Germany if the regulatory environment shifts."
Linton has previously said that he wants Canopy to “dominate” the global marijuana market.
The German purchase, subject to approvals, will be made with 674,631 Canopy shares (TSX:CGC), which on Monday closed at $11.22 on the Toronto Stock Exchange, up 5.85 per cent.
At that value, the transaction would be worth about $7.57 million upon closing.
Canopy would also pay up to 490,000 shares over two years if certain performance targets are achieved, bringing the total number of shares to be issued to about 1.16 million – one per cent of Canopy's current common shares.
Canopy Growth currently has a market value of about $1.29 billion, based on Monday’s stock price.
This story originally appeared in the Ottawa Business Journal.