SMITHS FALLS,
ON and ALICANTE, Spain,
April 16, 2019 /PRNewswire/
- Canopy Growth Corporation ("Canopy Growth" or the "Company")
(TSX: WEED) (NYSE: CGC) is pleased to announce that it has
completed an all-cash acquisition of Spain-based licensed cannabis producer Cáñamo
y Fibras Naturales, S.L. ("Cafina"). The acquisition lays the
foundation for Canopy Growth to expand its European production
footprint into one of the most ideal growing regions in the world,
complementing the Company's existing 430,000 square foot licensed
production site in Odense,
Denmark, as well as its world-class ISO 13485
internationally certified Storz and Bickel facility in Tütlingen,
Germany.
Cafina is one of three companies in Spain authorized to cultivate, distribute and
export cannabis containing more than 0.2% of tetrahydrocannabinol
(THC) for medicinal and research purposes, and does so today in a
1,600 sq. ft. greenhouse. It is also licensed to conduct hemp
cultivation. With this acquisition and planned corresponding
expansion in Spain, Canopy Growth
improves its long-term positioning to address demand across
Europe for medical cannabis and
CBD products. Canopy Growth is also partnered with a second
licensed producer in Spain that
produces cannabis flowers for the Company under an existing supply
arrangement.
"Operating multiple production assets within Europe will allow us to increase revenue in
the EU free of supply constraints," commented Mark Zekulin, President & Co-CEO, Canopy
Growth. "This strategic acquisition in a scalable, low-cost
production environment diversifies our owned production
capabilities in Europe, similar to
our approach in Canada where we
have production facilities in seven different provinces. Adding
Cafina will allow us to quickly build out our presence in
Spain using its existing
cultivation licence as a launch pad, while ensuring our Canadian
footprint – the largest in the world – can continue to serve the
medical and recreational needs of Canadians."
Founded in 2014, Cafina is based in the Province of Alicante in
Spain. With a focused team, Cafina
has already established a small greenhouse for research-related
medical cannabis production in addition to focusing on crop-related
R&D and the sale of hemp seed. Cafina received its general and
research licence in November 2018
from the Spanish Agency for Medicines and Health Products (AEMPS)
and had previously been granted a hemp licence which authorized the
cultivation of cannabis sativa (<0.2% THC) and small-scale
extraction of cannabinoids for research purposes. Cafina CEO,
Xavier Delas Martinez will continue
managing the site as Canopy Growth injects capital in order to
scale the operation through calendar 2019, including.
Canopy Growth continues to strategically deploy its substantial
cash reserves to acquire assets that will allow the Company to
scale efficiently and into global markets.
Here's to Future Growth (in sunny Spain).
About Canopy Growth Corporation
Canopy Growth is a
world-leading diversified cannabis and hemp company, offering
distinct brands and curated cannabis varieties in dried, oil and
Softgel capsule forms. Canopy Growth offers medically approved
vaporizers through the Company's subsidiary, Storz & Bickel
GMbH & Co. KG. From product and process innovation to market
execution, Canopy Growth is driven by a passion for leadership and
a commitment to building a world-class cannabis company one
product, site and country at a time. The Company has operations in
over a dozen countries across five continents.
The Company is proudly dedicated to educating healthcare
practitioners, conducting robust clinical research, and furthering
the public's understanding of cannabis, and through its wholly
owned subsidiary, Canopy Health Innovations ("Canopy Health"), has
devoted millions of dollars toward cutting edge, commercializable
research and IP development. Canopy Growth works with the Beckley
Foundation and has launched Beckley Canopy Therapeutics to research
and develop clinically validated cannabis-based medicines, with a
strong focus on intellectual property protection. Canopy Growth
acquired assets of leading hemp research company, ebbu, Inc.
("ebbu"). Intellectual Property ("IP") and R&D advancements
achieved by ebbu's team apply directly to Canopy Growth's hemp and
THC-rich cannabis genetic breeding program and its cannabis-infused
beverage capabilities. Through partly owned subsidiary Canopy
Rivers Corporation, the Company is providing resources and
investment to new market entrants and building a portfolio of
stable investments in the sector.
From our historic public listing on the Toronto Stock Exchange
and New York Stock Exchange to our continued international
expansion, pride in advancing shareholder value through leadership
is engrained in all we do at Canopy Growth. Canopy Growth has
established partnerships with leading sector names including
cannabis icon Snoop Dogg, breeding legends DNA Genetics and Green
House seeds, Battelle, the world's largest nonprofit research and
development organization, and Fortune 500 alcohol leader
Constellation Brands, to name but a few. Canopy Growth operates ten
licensed cannabis production sites with over 4.3 million square
feet of production capacity, including over one million square feet
of GMP certified production space. The Company operates Tweed
retail stores in Newfoundland and
Manitoba and has entered into
supply agreements with every Canadian province and territory. For
more information visit www.canopygrowth.com
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 Canopy Growth 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 include further expansion into
international markets. 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, and such risks contained in the Company's annual
information form dated June 27, 2018
and filed with Canadian securities regulators available on the
Company's issuer profile on SEDAR at www.sedar.com. 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. 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 an 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.
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SOURCE Canopy Growth Corporation