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Monday, September 25, 2023

Cannabis Weekly Round-Up: Canopy Lets Go of European Subsidiary

A Canadian licensed producer announced it will divest a business in the European market.

Also this past week, a multi-state operator (MSO) in the US announced a plan to offer its medical vape pens in the UK market as a way to appeal to patients new to cannabis.

Keep reading to find out more cannabis highlights from the past five days.

Canopy lets go of European medical subsidiary

Changes in plans are par for the course in the Canadian cannabis marketplace, and recently licensed producers in the country have been refocusing their intentions as their financial situations change.

The latest example of this trend involves Canadian giant Canopy Growth (NASDAQ:CGC,TSX:WEED), which announced it will divest its European medical cannabis subsidiary known as C3 Cannabinoid Compound Company.

David Klein, CEO of Canopy, said this is part of the firm’s maturation process as a consumer product company.

“I would like to thank the C3 team members for their hard work, dedication, and commitment to building the successful business that C3 is today,” Klein said.

Under the deal, Dermapharm Holding, a pharmaceutical company based in Germany, will acquire C3 for an upfront payment of approximately C$115.5 million. An additional C$61.4 million will be delivered “subject to the achievement of select milestones by the C3 business.”

The company said that thanks to this decision, it will “avoid future operational complexities” related to its subsidiary. C3 was acquired in 2019, before Klein was made CEO of the firm. At the time, the acquisition ran Canopy C$342.9 million.

US MSO expands availability of medical cannabis pens

Columbia Care (NEO:CCHW,CSE:CCHW,OTCQX:CCHWF) is heading to Europe. The firm confirmed a plan to offer medical cannabis extract vaporizer pen products in the UK.

“We are witnessing increasing numbers of leading doctors integrate the use of medicinal cannabis into their practice evidencing growing acceptance in the UK of the clinical value of cannabinoids,” Nicholas Vita, CEO of Columbia Care, said in a press release.

Columbia Care’s pens will be part of its Ceed brand, and the company will have a variety of offerings when it comes to terpene profiles and THC to CBD ratios.

“UK clinicians practicing with cannabis have been telling us that they find cannabis flower difficult to dose, but they recognize the need for fast-onset options for patients experiencing breakthrough pain,” Rosemary Mazanet, chief scientific officer with Columbia Care, said.

Cannabis company news

  • Glass House Brands (NEO:GLAS.A.U,OTCQX:GLASF) announced a senior secured-term loan agreement worth up to US$100 million with an undisclosed US-based private credit investment fund. The funds will go towards the company’s cultivation facility in Camarillo, California.
  • Village Farms International (NASDAQ:VFF,TSX:VFF) informed investors it has applied to delist from the Toronto Stock Exchange. Village Farms said that due to the trading volumes seen on the Canadian exchange, it is no longer worth it to fund the costs needed to retain a TSX listing.
  • MedMen Enterprises (CSE:MMEN,OTCQX:MMNFF) will begin offering cannabis delivery services in the Florida market. “We are always looking for ways to make high-quality cannabis products more accessible and convenient for patients,” Michael Serruya, MedMen’s interim CEO, said.
  • Innovative Industrial Properties (IIP) (NYSE:IIPR) sent out a notice for its Q4 dividend, which will be worth US$1.50 per share.

Don’t forget to follow us @INN_Cannabis for real-time updates!

Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.

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