Friendly acquisition will create Canada’s largest medical marijuana company
Deal could mark the start of consolidation in Canada's cannabis industry
Toronto—Tweed Marijuana has announced that it will purchase Bedrocan Cannabis in a deal that will create what it said will be the world’s largest publicly-traded cannabis company.
“We are bringing the two strongest brands in Canadian cannabis under one roof,” Bruce Linton, chairman and CEO of Tweed said. “We will continue to develop and grow the Tweed and Bedrocan Canada brands, focusing on rapidly increasing market penetration for our full line of products. Over 5,000 existing customers will now benefit from having access to products from two producers. For future patients and physicians, the choice will be clear.”
The company said the acquisition marks the beginning of the structured evolution of the Canadian cannabis sector. The consolidated company will have licensed sales capacity of approximately 6,000 kilograms per year. While Tweed is focused mainly on the production of marijuana at two Canadian facilities, Bedrocan works on clinical research, technological automated production processes, and innovative product development.
Bedrocan Canada shareholders will receive approximately 33.9 million common shares of Tweed in the purchase, representing $61-million based on the June 23 closing price.
“The rationale for and benefits of this transaction are clear, for investors, health professionals, researchers, and most importantly, for patients,” Marc Wayne, president and CEO of Bedrocan Canada said.
“Tweed and Bedrocan Canada have each helped set the industry standards for professionalism, product quality, dependable supply and exceptional customer care. Together, we will have the largest production and sales capacity in the industry, as well as a broad and complementary product line, and will be capable of allocating additional resources to product research and innovation, as well as to continuous improvement of the customer care experience,” he added.