Transaction supports the Company's focus on
achieving profitability through streamlined operations in
Canada
SMITHS
FALLS, ON, Jan. 3, 2023 /CNW/ - Canopy Growth
Corporation ("Canopy Growth" or the "Company") (TSX: WEED) (NASDAQ:
CGC) announced today that it has closed its previously announced
transactions with OEG Retail Cannabis ("OEGRC") and 420 Investments
Ltd. ("FOUR20") to divest its retail business across Canada, which includes the stores operating
under the Tweed and Tokyo Smoke retail banners.
"The divestiture of our Canadian retail business marks an
important step forward on our path to profitability and furthers
Canopy Growth's focus on generating revenue growth in the Canadian
market," said David Klein, CEO,
Canopy Growth. "These retail locations will continue operating
under the experienced leadership of OERGC and FOUR20 under their
respective retail brands to serve Canadian consumers with
high-quality in-store experiences."
Overview of the OEGRC
Transaction:
- OEGRC has acquired ownership of 23 Tokyo Smoke and Tweed store
locations across Manitoba,
Saskatchewan, and Newfoundland and Labrador.
- As part of the OEGRC Transaction, the Tokyo Smoke brand has
been transferred to OEGRC and all purchased stores currently
branded as Tweed will be rebranded.
- The master franchise agreement between the Company and OEGRC
pursuant to which OEGRC licenses the Tokyo Smoke brand in
Ontario has been terminated
effective on closing of the OEGRC Transaction.
Overview of the FOUR20
Transaction:
- FOUR20, a licensed cannabis retailer, acquired five of the
Company's corporate stores in Alberta.
As previously announced, Canopy Growth will continue to own and
operate the iconic Tweed brand and will remain focused on bringing
a portfolio of mainstream flower, pre-rolled, infused gummies, and
beverage options to consumers in Canada.
About Canopy Growth
Canopy Growth is a leading North American cannabis and consumer
packaged goods ("CPG") company dedicated to unleashing the power of
cannabis to improve lives.
Through an unwavering commitment to our consumers, Canopy Growth
delivers innovative products with a focus on premium and mainstream
cannabis brands including Doja, 7ACRES, Tweed, and Deep Space. Our
CPG portfolio features sugar-free sports hydration brand BioSteel,
targeted 24-hour skincare and wellness solutions from This Works,
gourmet wellness products by Martha Stewart CBD, and category
defining vaporizer technology made in Germany by Storz & Bickel.
Canopy Growth has also established a comprehensive ecosystem to
realize the opportunities presented by the U.S. THC market through
its rights to acquire Acreage Holdings, a vertically integrated
multi-state cannabis operator with principal operations in densely
populated states across the Northeast, as well as Wana Brands, a leading cannabis edible brand in
North America, and Jetty Extracts,
a California-based producer of
high-quality cannabis extracts and pioneer of clean vape
technology.
Beyond our world-class products, Canopy Growth is leading the
industry forward through a commitment to social equity, responsible
use, and community reinvestment—pioneering a future where cannabis
is understood and welcomed for its potential to help achieve
greater well-being and life enhancement.
Notice Regarding Forward Looking
Statements
This news release contains "forward-looking statements"
within the meaning of the United States Private Securities
Litigation Reform Act of 1995 and "forward-looking information"
within the meaning of applicable Canadian securities legislation.
Often, but not always, forward-looking statements and information
can be identified by the use of words such as "plans", "expects" or
"does not expect", "is expected", "estimates", "intends",
"anticipates" or "does not anticipate", or "believes", or
variations of such words and phrases or state that certain actions,
events or results "may", "could", "would", "might" or "will" be
taken, occur or be achieved. Forward-looking statements or
information involve known and unknown risks, uncertainties and
other factors which may cause the actual results, performance or
achievements of the Company or its subsidiaries to be materially
different from any future results, performance or achievements
expressed or implied by the forward-looking statements or
information contained in this news release. Examples of such
statements and uncertainties include statements with respect to the
continued operations and anticipated benefits of the Canadian
retail locations; the Company's anticipated plans with respect to
its portfolio of mainstream flower, pre-rolled, and ready-to-enjoy
options; and expectations for other economic, business,
and/or competitive factors.
Risks, uncertainties and other factors involved with
forward-looking information could cause actual events, results,
performance, prospects and opportunities to differ materially from
those expressed or implied by such forward-looking information,
including expectations regarding future investment, growth and
expansion of operations; regulatory and licensing risks; changes in
general economic, business and political conditions, including
changes in the financial and stock markets and the impacts of
increased rates of inflation; legal and regulatory risks inherent
in the cannabis industry, including the global regulatory landscape
and enforcement related to cannabis, political risks and risks
relating to regulatory change; risks relating to anti-money
laundering laws; compliance with extensive government regulation
and the interpretation of various laws regulations and policies;
public opinion and perception of the cannabis industry; and such
other risks contained in the public filings of the Company filed
with Canadian securities regulators and available under the
Company's profile on SEDAR at www.sedar.com and with the United
States Securities and Exchange Commission through EDGAR at
www.sec.gov/edgar, including the Company's annual report on Form
10-K for the year ended March 31,
2022.
In respect of the forward-looking statements and information,
the Company has provided such statements and information in
reliance on certain assumptions that they believe are reasonable at
this time. Although the Company believes that the assumptions and
factors used in preparing the forward-looking information or
forward-looking statements in this news release are reasonable,
undue reliance should not be placed on such information and no
assurance can be given that such events will occur in the disclosed
time frames or at all. Should one or more of the foregoing risks or
uncertainties materialize, or should assumptions underlying the
forward-looking information prove incorrect, actual results may
vary materially from those described herein as intended, planned,
anticipated, believed, estimated or expected. Although the Company
has attempted to identify important risks, uncertainties and
factors which could cause actual results to differ materially,
there may be others that cause results not to be as anticipated,
estimated or intended. The forward-looking information and
forward-looking statements included in this news release are made
as of the date of this news release and the Company does not
undertake any obligation to publicly update such forward-looking
information or forward-looking information to reflect new
information, subsequent events or otherwise unless required by
applicable securities laws.
SOURCE Canopy Growth Corporation