Canadian medical marijuana firm keeps growing with pair of acquisitions
Ontario-based Canopy Growth buys two Quebec companies as it continues to boost market share in budding industry
DRUMMONDVILLE, Que.—Canadian medical marijuana company Canopy Growth Corp. is stepping up its presence in the Quebec medical marijuana and hemp markets with a pair of acquisitions.
In two deals announced Nov. 1, Canopy said it will buy Vert Médical and Groupe H.E.M.P.CA Inc.—two affiliated companies with operations in Drummondville and nearby Saint-Lucien, Que.
The purchase agreement for Vert Médical, which is currently working to secure its Access to Cannabis for Medical Purposes Regulations (ACMPR) license, includes the lease of a 7,000 square foot indoor growing and office facility in Saint-Lucien. Canopy will assume $500,000 of the company’s debt immediately and issue up to approximately 350,000 shares to pay for the company, contingent on certain milestones.
Canopy shares were trading at $6.55 at close Oct. 31 and jumped approximately 2.5 per cent in early morning trading Tuesday.
“We have spent the last few months assessing the market for potential acquisitions and Vert is one of a select few that stood up to our financial and business evaluation,” Bruce Linton, the company’s chairman and CEO, said. “Expanding the medical cannabis market in Quebec is a key objective for our business and the acquisition of Vert gives us an exceptional platform upon which to meet the needs of the market in Quebec.”
Along with the purchase of Vert Médical, Canopy said it has also signed a deal to acquire Groupe Hemp, which sells a range of hemp products. The medical marijuana firm said the deal will help it diversify its offering in a “complimentary” market. The deal includes the assumption of $300,000 of Groupe Hemp’s debt and 258,037 Canopy shares.
The Smiths Falls, Ont.-based company has emerged as one of the leaders in Canada’s medical marijuana industry. It re-branded last year after it closed on a major acquisition of Bedrocan Cannabis Corp.; it was formerly known as Tweed Marijuana Inc.