Article by Sunny Freeman, Financial Post
Canopy Growth Corp. is solidifying its international growth agenda with its all-stock acquisition of German-based MedCann, giving it a distribution network in Europe’s largest economy.
MedCann has navigated the complex regulatory environment for import and distribution, putting Tweed-branded cannabis strains into pharmacies in Germany — where the burgeoning industry relies on imports. Germany legalized access to medical cannabis in 2005, but no domestic production currently exists.
The all-stock deal is initially worth about $7.2 million based on Canopy Growth’s Friday’s closing price of $10.60 a share, plus the addition of new stock to be issued upon hitting certain milestones. That would give MedCann a potential 1.6 million shares in the company, about one per cent of its outstanding stock.