OAKVILLE, Ont.—There’s another buyer in Canada’s fast-growing medical marijuana sector.
Several months after Canopy Growth Corp. shook up the industry by buying Bedrocan Cannabis, Canadian Cannabis Corp., a Brampton-based provider of medical marijuana, is opening its chequebook to acquire Hydropothecary. CCC has agreed to pay $28 million for the Gatineau, Que.-based producer and distributor.
“This acquisition of Hydropothecary represents one of the most important milestones in our development,” Benjamin Ward, CEO of CCC, said. “In addition to allowing us to produce and distribute medical marijuana in Canada, the addition of an industry leader like Hydropothecary will allow us to deliver unparalleled products, service and customer convenience.”
CCC has paid an initial $500,000 deposit and will pay the remaining purchase price in cash when the deal closes.
With the acquisition, Canadian Cannabis will take control of what it said is the largest Marijuana for Medical Purposes Regulations-licensed landowner. Hydropothecary operates a grow facility located on 65 acres. It currently cultivates a flowering production area of 7,500 square-feet, while a further 35,000 square-foot facility has recently been completed; production in the additional space is expected to begin in the first quarter of 2016.
The acquisition will add 17 employees to CCC’s roster, including management, who will be integrated into the company in various roles.
The deal is expected to close Nov. 17.