Canopy Growth Corporation has entered an agreement to purchase the remaining 33% stake in BC Tweed Joint Venture. This marks the consolidation of the two largest licensed cannabis facilities in the world.
Following the transaction, Canopy Growth will issue up to $374m worth of shares in the firm to the minority shareholders of BC Tweed. Payments are milestone-based and will be released over four years based upon the achievement of certain production milestones.
The Operators, multi-generational cultivators, will continue to manage the BC-based operations for a period of five years.
The BC Tweed greenhouses represent up to 3 million square feet of greenhouse growing capacity. Since its inception on October 2017, it has already licensed 1.7 million square feet for cannabis production.
“Our provincial distribution agreements, commitment to quality and value-add processing, and leading brand portfolio position Canopy Growth as the market share leader in Canada’s future recreational cannabis market,” Canopy CEO and chairperson Bruce Linton commented.
He added: “Consolidating BC Tweed fully under the Canopy ensures that the full value of our strategic position is realized by Canopy shareholders.”
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