SMITHS FALLS, Ont.—There’s a new “market leader” of Canada’s burgeoning medical marijuana industry.
Tweed Marijuana Inc. has officially closed an all-stock deal to acquire Bedrocan Cannabis Corp. The transaction creates what the company said is the world’s largest publicly-traded cannabis company.
“We have established the clear market leader, and are driving the evolution of the cannabis sector in Canada,” Bruce Linton, chairman and CEO of TMI, said. “The acquisition of Bedrocan is the first step, and we intend to continue to take the initiative, growing our portfolio of brands, expanding clinical research on cannabis, adding new products and services, and introducing additional innovations for patients and consumers.”
Together, Tweed and Bedrocan will look to consolidate their client base, which currently includes 5,600 active registered customers, as well as solidify its position as the dominant player in Canada’s medical marijuana market.
“The company’s priority is now to build on the unique strengths of each brand, with their distinct customer segments, to accelerate patient acquisition and the rate of market growth,” TMI said.
The company said the acquisition will created new advantages for its patients, with the ability to access both Tweed and Bedrocan product lines for dried cannabis and cannabis oils. Tweed announced it had received Health Canada approval to begin production of oil extraction at its Smiths Falls facility earlier this month. Similarly, Bedrocan earned the final regulatory nod on its Toronto plant last week. Bedrocan’s facility is now fully licensed across all 34 vegetative and growing room as well as three dispensing rooms and a two-floor security vault.
The combined company is licensed to produce and sell 5,740 kilograms of cannabis per year.
TMI added the integration of the Tweed and Bedrocan operations is underway.
“Cross-training and system amalgamation are progressing on an ambitious schedule, to ensure the front-end experience is seamless for new and existing customers. Back-end synergies and cost-savings will provide value to investors as duplicated expenses are phased out,” the company said.