Canopy Growth Corporation has entered into a deal to purchase a minority stake in Canadian edible food maker Indiva, as well as to take over the marketing and distribution of the company’s brand of cannabis-infused gummies, Wanna, the companies announced Tuesday.
Canopy Announces Acquisition of 19.99% Stake in London, Ontario-based Indiva for $2.1 Million made it possible. In addition he added a five-year option when the initial license agreement expires.
The Smiths Falls, Ontario-based cannabis operator has announced for the first time a deal to acquire a call option that will see it acquire Wana Brands in October 2021 for US$297.5 million in cash. This will be triggered when the United States legalizes cannabis. Prior to today’s announcement, Indiva owned the distribution and marketing rights for his Wana products in Canada.
Wana is one of the largest manufacturers of cannabis-filled gummies in North America, with leading brands in both the United States and Canada. Wana is Canada’s top edible brand with about 12 percent market share, according to industry data tracker Hifyre, and the company also has operations in 14 U.S. states and Puerto Rico. Canopy is also seeking to comply with Nasdaq listing requirements while integrating U.S. investments such as Wana, Acreage Holdings and Jetty Brands into its Canopy USA division.
Canopy CEO David Klein said in a statement that the deal with Indiva will immediately increase the company’s revenue while also being part of its strategy to adopt a lower-capital approach to cannabis production. rice field.
“By better aligning Wana’s ownership across North America, we expect to accelerate the Canadian introduction of product innovations that are already hugely popular in the United States,” Klein said in a statement. said.
The deal also comes amid a tumultuous week for Canopy. The company announced yesterday that it has asked S&P to withdraw its credit rating due to the modification of one outstanding loan, while continuing to resubmit a series of financial statements from 2022 following misstatements. The company also announced that it has voluntarily submitted an order to suspend trading due to the management team’s decision to suspend trading. BioSteel Sports Performance Drinks segment sales. Canopy was originally scheduled to release its updated results today, but a company spokesperson said it would first file revised 2022 results before releasing its fiscal year-end results.
