Canopy Growth Corporation

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Canopy Growth Corporation
Medical marijuana
Traded as TSXWEED and NYSECGC
Industry Medical Marijuana
Predecessor Tweed Marijuana Inc.
Founded 2014 (2014)
Founders Bruce Linton and Chuck Rifici
Headquarters Smiths Falls, Ontario, Canada
Area served
Canada
Products Medical cannabis
Revenue Increase C$ 40 million (2017)[1]
Decrease C$ -15 million (2017)[1]
Decrease C$ -17 million (2017)[1]
Total assets Increase C$ 678 million[1]
Total equity Increase C$ 615 million[1]
Website www.canopygrowth.com
www.tweed.com
www.bedrocan.ca

Canopy Growth Corporation, formerly Tweed Marijuana Inc., is a medical marijuana company based in Smiths Falls, Ontario, founded by Bruce Linton and Chuck Rifici in 2014. Rifici left the company in 2015.[2] As of late September 2018, Canopy was the world's largest cannabis company, based on the value of all shares, or market capitalization.

History[edit]

A Carleton University grad, Linton took over as Chairman and CEO while Marc Wayne became the President.[3] [4][5] The company was the first federally regulated, publicly traded cannabis producer in North America, traded on the Toronto Stock Exchange as WEED. It began trading as CGC on the New York Stock Exchange on May 24, 2018,[6] as the first cannabis producer on the NYSE.[7] Until October 17, 2018[8] — marijuana is legal in Canada only for medical purposes; until that time, growers are licensed by Health Canada under the Access to Cannabis for Medical Purposes Regulations (ACMPR).[9] The company was described as "one of the world's — and Canada's first — premier exporters of marijuana" by the Financial Post news organization in December 2016.[10]

The company was renamed to Canopy Growth Corp. in September 2015 with two established brands.[11] Specifically, CGC is the parent company of licensed cannabis producers Tweed Inc., Tweed Farms Inc., Bedrocan Canada Inc., as well as newly acquired companies.

Tweed operated out of the former Hershey's chocolate factory in Smiths Falls, Ontario,[12] and operates the Tweed Farms greenhouse in Niagara-on-the-Lake.[13][14]

In provinces where the private sector would be allowed to sell cannabis, the company was making plans to open retail stores via its subsidiary Tweed Inc.[15][16]

In August 2018, Constellation Brands (a beer, wine and spirits producer) announced that it would invest an additional C$5 billion (US$3.8 billion) in Canopy Growth, giving it a 38% interest in the company, up from the previous 10%. President Bruce Linton said the additional funds would be used for international expansion, even into the US market as federal laws in the US allow it.[17][18] Future marketing plans include products such as cannabis-infused beverages and sleep aids.[19] After the Constellation deal was announced, the market value of Canopy Growth rose to nearly US$12 billion.[20][21]

By October 5, 2018, the company's market capitalization exceeded US$14 billion[22] and Linton was named 2018 CEO of the Year by the Ottawa Board of Trade and Ottawa Business Journal.[3] [4]

Overseas operations[edit]

In addition to operations in Canada, Canopy Growth has a partnership agreement in Spain with pharma company Alcaliber S.A.,[23] owns a subsidiary in Germany that imports medical cannabis, Spektrum Cannabis GmbH,[24] and has a partnership with Spectrum Cannabis Denmark ApS, a medical cannabis grower.[25] The company is also involved in the business in Jamaica,[26] Chile and Brazil,[27] as well as in Australia.[28] In 2018, the company acquired Annabis Medical, a distributor in the Czech Republic, and medical marijuana supplier Daddy Cann Lesotho in Africa.[15]

Expansion[edit]

Subsequent acquisitions for this corporation included Vert Medical, the German cannabis distributor MedCann (now Spektrum Cannabis) and a majority interest in Quebec's Groupe H.E.M.P.CA Inc. In early December 2016, Canopy Growth Corp. announced a friendly takeover bid of another licensed Ontario-based producer, Mettrum Health (CVE:MT). The deal, pending the approval of Mettrum's board, was closed in January 2017.[29]

In addition to sales in the domestic market, Canopy Growth began selling medical cannabis products in Germany and Brazil in 2016. However, the company was operating at a loss, presumably because of the significant expenditures it was making to acquire competitors in preparation for significantly increased cannabis demand by the recreational use market expected to commence in 2018. Legislation to legalize cannabis for recreational use was approved by the House of Commons of Canada in November 2017;[30] the Senate of Canada was expected to vote on the Cannabis Act (Bill C-45) on June 7, 2018.[31] Actual sales to casual users was likely to commence in January 2018.[32][33]

On January 27, 2017, Canopy and Mettrum Health Corp. announced the takeover of Mettrum by Canopy. The deal was awaiting approval by the Ontario Superior Court of Justice. At around the same time the deal had closed, Canopy completed the purchase of the entire former Hershey's chocolate factory, adding 50 percent more production space at that location.[34] The takeover of Mettrum has resulted in "the creation of a world-leading diversified cannabis company with six licensed facilities and a licensed production footprint of approximately 665,000 sq. ft. with significant acreage for expansion".

On Feb, 21, 2018 – Canopy Growth Corporation and Sunniva Inc., a North American provider of medical cannabis products and services, announced a definitive supply agreement, whereby Sunniva, through its wholly owned subsidiary in Canada, Sunniva Medical Inc., committed to sell Canopy 45,000 kilograms of premium quality cannabis annually over an initial two-year period commencing in calendar Q1 2019.

As of late May 2018, the company had eight grow sites, in seven countries, with total capacity above 2.4 million square feet.[6]

References[edit]

  1. ^ a b c d e "Canopy Growth Corporation". TMX Money. QuoteMedia. Retrieved 21 February 2018.
  2. ^ "Tweed Marijuana co-founder Chuck Rifici resigns from boardhttp://ottawacitizen.com/news/local-news/tweed-marijuana-co-founder-chuck-rifici-resigns-from-boardurl=http://ottawacitizen.com/news/local-news/tweed-marijuana-co-founder-chuck-rifici-resigns-from-board". External link in |title= (help); Missing or empty |url= (help)
  3. ^ a b "Canopy Growth's Bruce Linton named Ottawa's CEO of the Year - Ottawa Business Journal". obj.ca.
  4. ^ a b "Bloomberg - Are you a robot?". www.bloomberg.com.
  5. ^ "How one small Ontario town became the cannabis capital of Canada - The Star".
  6. ^ a b "Canopy Growth kicks off first day on the New York Stock Exchange". 24 May 2018.
  7. ^ "Canopy Growth applies to become first pot producer listed on the NYSE". 14 May 2018.
  8. ^ "Marijuana to be legal in Canada starting October 17, Trudeau confirms". Global News. Retrieved 2018-06-21.
  9. ^ "Authorized Licensed Producers for Medical Purposes". Health Canada - Drugs and Health Products. Health Canada. 23 November 2016. Retrieved 2 December 2016.
  10. ^ MidasLetter (1 December 2016). "Canopy takes over Mettrum, here's who might be next in its sights". Financial Post. Toronto. Retrieved 2 December 2016.
  11. ^ Koven, Peter (17 September 2016). "Tweed Marijuana renames itself Canopy Growth Corp as it charts growth path at AGM". Financial Post. Toronto. Retrieved 2 December 2016.
  12. ^ Tweed. "About Us". Tweed. Retrieved 2016-06-10.
  13. ^ "Health Canada approves NOTL marijuana facility".
  14. ^ "Bloomberg - Are you a robot?". www.bloomberg.com.
  15. ^ a b "It Got Lost in the Hoopla, but Canopy Growth Had a Really Great Q1". Fox Business. 16 August 2018. Retrieved 16 August 2018.
  16. ^ "Smiths Falls cannabis company Tweed prepares for privatized pot sales". Global News. 14 August 2018. Retrieved 16 August 2018.
  17. ^ "Constellation Brands invests $5B to boost stake in pot producer Canopy Growth - The Star".
  18. ^ "'This is rocket fuel': Constellation Brands spending $5 billion to boost stake in Canopy Growth". 15 August 2018.
  19. ^ Sheetz, Michael (15 August 2018). "Beer maker Constellation ups bet on cannabis with $4 billion investment in Canopy Growth".
  20. ^ Owram, Kristine (22 August 2018). "With $5-billion Constellation deal, Canopy Growth is emerging as the Google of pot". Financial Post. Retrieved 23 August 2018.
  21. ^ "Canopy Growth". Market Watch. Retrieved 23 August 2018. Market Cap $11.19B
  22. ^ "Canopy Growth Corporation [WEED] - Canopy Growth Corporation Stock Quotes - TMXmoney". web.tmxmoney.com.
  23. ^ "Alcaliber - Canopy Growth".
  24. ^ "Spektrum Cannabis - Canopy Growth".
  25. ^ "Spectrum Cannabis Denmark - Canopy Growth".
  26. ^ "Canopy Growth increases international footprint by expanding into Jamaican medical market with the introduction of Tweed JA". www.newswire.ca.
  27. ^ "Pair of deals point towards Canadian cannabis interest in South America". 10 April 2018.
  28. ^ "Canopy Growth enters landmark research and production MOU with Australian Victoria State Government". www.newswire.ca.
  29. ^ Israel, Solomon (1 December 2016). "Canopy Growth to merge with Canadian competitor Mettrum - Canada's biggest cannabis grower continues its string of acquisitions". CBC News. CBC. Retrieved 2 December 2016. Mettrum has established a line of cannabis products that work well in a medical context and will transition naturally into a natural and healthy lifestyle market
  30. ^ "Federal marijuana legislation approved by House of Commons, moves on to Senate" – via The Globe and Mail.
  31. ^ "Legalization date still up in the air, federal cannabis czar says". 24 May 2018.
  32. ^ Cain, Patrick (9 October 2016). "How will legal pot be sold? Three things that might happen, and one that won't". Global News. Global News, a division of Corus Entertainment Inc. Retrieved 1 December 2016. I see some kind of government control at the level of distribution, but I'm not sure what that's going to look like. I find it hard to believe that they are going to allow dispensaries to simply cross over in their current form.
  33. ^ Cullen, Catherine (30 November 2016). "8 burning questions about the coming federal pot report Who can buy and sell pot, where it will be sold, and who gets the profits, all up in the air". CBC News. CBC. Retrieved 30 November 2016.
  34. ^ Freeman, Sunny (14 February 2017). "Canopy Growth Corp almost triples revenue as number of patients soars". Herald. Calgary. Retrieved 14 February 2017. FINANCIAL POST 02.14.2017

External links[edit]