Canopy Growth Corp. (OTC:TWMJF) (TSXV:CGC) just announced today that they have entered into an agreement to acquire a licensed German cannabis distributor, MedCann GmbH. Med Cann Pharma and Nutraceuticals is the German based distributor that has successfully marketed Tweed branded strains of marijuana in German pharmacies.
Medical Marijuana in Germany
"Germany has begun a process of enabling medical access to cannabis and through a policy that recognized Canopy as the first legal supply source from North America," said Bruce Linton, Chairman and CEO of Canopy Growth Corporation. "This acquisition establishes a distinct and purely medicinal corporate entity that helps us today but also positions us for domestic medicinal production inside Germany if the regulatory environment shifts."
Currently, there is no production of marijuana inside of Germany, despite permitting patient access to cannabis in 2005. Currently, cannabis is imported into Germany from Canada and Holland.
MedCann Pharma and Nutraceuticals
According to the release, "MedCann has proven its ability to navigate the complex regulatory environment for cannabis importation and distribution in Germany. With a highly experienced leadership team, led by Dr. Pierre Debs, it has established itself as a leading cannabis importer and distributor within Germany where the cannabis industry still relies solely on imported products."
The acquisition is structured against certain licensing milestones that will move the Company towards domestic production opportunities. 674,631 common shares in the Company will be issued to MedCann upon the closing of the transaction. A further 367,981 commons shares in the Company will be issued on the 18-month anniversary of obtaining an Import and Distribution Licensefrom the German Health Minister. A further 122,660 common shares in the Company will be issued to MedCann principal upon achieving certain other milestones within two years of closing the transaction.
Keep in mind that this acquisition deal is still subject to approval by the Toronto Stock Exchange.
For more information on Canopy Growth Corp, be sure to check out their profile in our TSX listed marijuana stock database. There, you will find marijuana stock profiles for all Canadian cannabis companies that are listed on the Toronto Stock Exchange and TSX Venture Exchange.
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