Canopy Growth Announces $254 Million Acquisition of German THC Maker

187

The top cannabis companies in the world are currently embarking on an international acquisition spree, competing among each other to gain market share in these emerging cannabis sectors.

Europe, with Germany in particular, is seen as the next major market for marijuana after North America, and many companies have already established themselves in the area.

Canopy Growth Corp (TSE: WEED)(NYSE: CGC) made a major move in Germany, announcing today that they had purchased a German THC manufacturer, Cannabinoid Compound Co (C3), for $254 million.



C3 happens to be Europe’s largest cannabinoid-based pharmaceuticals firm, manufacturing and distributing dronabinol, a cannabinoid that is used to help patients deal with cancer treatment symptoms as well as HIV/AIDS-induced anorexia. The drug is also approved by the U.S. Food and Drug Administration, alongside other European countries.

Overall, C3 supplied almost 20,000 patients in 2018 in Germany with dronabinol, resulting in $30.31 million in product sales worldwide. The business also owns a number of patents in specific extraction technologies as well as synthetic CBD production methods, alongside several cannabis-related clinical trials that are currently underway.

What this boils down to is greater choice. This acquisition will allow us to offer more options to physicians across Europe, accelerate our commercial sales and increase our economic footprint on the continent, and drive forward new innovations,” said Bruce Linton, Chairman and Co-CEO of Canopy Growth. “Our goal is to build on C3’s extraordinary reputation and decades of success as we move to an innovative continuum of medical cannabis therapies that will enable physicians globally to better treat their patients.”

Two of the largest cannabis companies competing in Germany are Aurora Cannabis (TSE: ACB)(NYSE: ACB) and Canopy Growth. Previously, Aurora had been chosen as the top pick by the German government out of dozens of cannabis applicants to grow and ship domestic German marijuana, having the best proof-of-concept out of all their competitors. However, this major acquisition by Canopy helps equalize the playing field so to speak, giving them an edge when it comes to CBD-derivative manufacturing.

Last month, Canopy announced a $3.4 billion deal to acquire the ownership rights to one of the U.S.’ largest multi-state operators, Acreage Holdings (CNSX: ACRG).

Although the agreement is contingent on lawmakers allowing cannabis companies operating in the U.S. to list on U.S. exchanges, it still marks a massive achievement for Canopy, and the resulting merger, should it happen, would create the strongest, vertically-integrated cannabis company in the world.

Despite this positive development for the company, shares of Canopy Growth dipped around 5 percent in today’s trading session.

Canopy Growth Company Profile

Canopy Growth Corp through its subsidiaries is the licensed producer of medical marijuana in Canada. The company grows, produces and sells medical marijuana.

It operates diverse brands and variety supported by over half million square feet of indoor and greenhouse marijuana production.

It sells medical marijuana under various brand names including Tweed, Bedrocan, and Mettrum. A majority of the revenue is derived from the sale of medical marijuana by Tweed and Bedrocan in Canada. – Warrior Trading News

NO COMMENTS

LEAVE A REPLY