Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Cannabis has been around longer than beer :o)
Another unbelievable week, thanks to Canopy.
Here's to many more.
Have a great weekend everyone!
You're mistaken.
The plants are grown with chemical fertilizer. Organic cannabis is quite different than non organic. Do some reading about it :o)
Not mentioning the buyback STZ was already in the process of doing, but stopped for a year because of this deal.
So fun to speculate :D
The deal is expected to close by the end of October.
I doubt Constellation will sell any shares, so it is dilution, but it also kind of isn't. Those shares aren't going anywhere.
So, it sounds weird, or I have smoked too much weed?
Yeah...So why would the 139million warrants only give "Call it 5 billion" or "At least 4.5billion" , when the initial 104.5m shares are valued at 5 billion?
Shouldn't the options be worth 6.95b if all are purchased at 50$?
What am I missing here?
Ah, maybe I got it here, still doesn't make sense, though.
Of those, 88.5 million are exercisable at a price per share of C$50.40,
88.5 * 50.50 = 4.46B
and 51.3 million are exercisable at the VWAP at the time of exercise
Just, really odd that Bruce said call it 5b, and the press release says 4.5.
What about the other 50m shares? Why do they make those statements, but seem to forget about the other 51 million shares????
Holy crap. On the conference call, Bruce said...If STZ exercises the the 139m warrants, "Let's call it 5 billion"
How is ~35% more shares worth the same as the original 104.5m?
I wonder if the buyout is already being finalized~
Interesting, or am I crazy?
From the nr:
Constellation will also receive additional warrants of Canopy that, if exercised, would provide for at least an additional $4.5 billion CAD to Canopy Growth.
I did say the other day that dollar days weren't exciting anymore.
Yesterday was out of this world.
Maybe we can have a couple 2 or 3 dollar days, so we can keep a healthy balance :D
Yeah, they didn't sound too interested about it anymore. He used the word "options" when talking about it. So they have the option to do it for a year.
This must be a record volume day already.....Over 30m combined. Ridiculous.
Comparing a jv that Hexo got screwed on, and a 50 billion dollar company taking control of Canopy, giving them 5 billion dollars, is quite a different scenario, and not quite comparable.
I don't think there is going to be a clonk for at least a couple daze.
Warned you, my friend!
Holy shit, I'm in shock.
Congrats everyone.
There really aren't any words..
Hurry up with the conference call and get to questions.
ARE YOU FUCKING KIDDING ME?!??!?!
AAAAAAAAAAAAAHAHHAHAHA WOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO
!!!!!!!!!!!!!
SO FUCKING RICH!!
UNFUCKING BELIEVABLE!!!!
SORRY BORSYEK, YOU'RE LOSING YOUR FUCKIN ASS!!!!!!!
Cannabis is not Tomatoes, they don't grow in the same conditions and they are more susceptible to bugs and mold. Better to have many smaller sites then 1 huge mega pest infested moldy greenhouse.
I agree with you on this >>
Announcement a little late?
See nothing yet...
Dollar days don't impress me anymore :(
Maybe after a 3:1 they will :D
You're going to hurt yourself.....Bad...
Aphria Records Revenue Increase of 17% in Quarter and 81% Year Over Year
Canada NewsWire
LEAMINGTON, ON, Aug. 1, 2018
Adjusted gross margin increases to 78.7% of revenue as cash costs per gram remain below $1.00
Industry leading eleventh consecutive quarter of positive Adjusted EBITDA from ACMPR operations1
LEAMINGTON, ON, Aug. 1, 2018 /CNW/ - Aphria Inc. ("Aphria" or the "Company") (TSX: APH or USOTCQB: APHQF) today reported its results, for the fourth quarter and year ended May 31, 2018. All amounts are expressed in Canadian dollars.
Key Operating Highlights
Eleventh consecutive quarter of positive Adjusted EBITDA from ACMPR operations1. $2.2 million in adjusted EBITDA from ACMPR operations1 in the quarter and $8.4 million for the year, a 38% increase over the prior year.
Improved cash costs to produce dried cannabis per gram1 ("Cash costs") to $0.95, a decrease of $0.01 in the quarter, remaining below $1.00 for the second consecutive quarter.
International operations and presence increased from Canada, US and Australia to also include Germany, Malta, Lesotho, Italy, Colombia, Argentina, United Kingdom and Uruguay. Subsequent to year-end, announced access to additional countries including Jamaica and Brazil in the fall.
Annual production capacity in Canada currently at 30,000 kgs at Aphria One and 5,000 kgs at Broken Coast.
Annual production capacity in Canada growing to 255,000 kgs, with first sale expected in January 2019, all expansions remain on time, pending Health Canada approval, and on budget.
Secured partnership with one of North America's largest liquor distributors, Southern Glazer's through their Canadian subsidiary, Great North Distributors, providing Aphria with an exclusive for cannabis representation2
Signed MOU's with British Columbia, Alberta, Manitoba, Quebec, New Brunswick and the Yukon Territory, with more agreements to be announced in the short-term.
Added significantly to our senior leadership team with the hire of our Chief Commercial Officer and Chief Legal Officer.
Continued leadership in cannabis product innovation with announcement of a major investment in our Extraction Centre of Excellence.
"We had a healthy fourth quarter and a solid year with many achievements we are proud of," said Vic Neufeld, Chief Executive Officer, Aphria. "We are excited and ready to hit the ground running on the first day of legal adult-use. It won't be without its challenges but we have a plan and the team in place to get it done. We continue to sign supply agreements with provinces and territories, and our Southern Glazer's sales network partnership is unmatched, ensuring our brands and products are available and represented by retailers across the country."
"Beyond that, we will continue to extend our industry-leading expertise and experience into global markets. We've had an exciting year adding more depth and experience to our senior leadership team that has helped expand our international operations and presence outside of Canada, US and Australia to an additional eight countries, and look forward to continued expansion within LATAM," continued Neufeld.
"Our continued growth and success is a direct result of the hard work and dedication of our employees and partners in delivering quality product and value to our patients, and establishing Aphria as the premier cannabis company in Canada and around the world," concluded Neufeld.
Key Financial Highlights
For an industry leading eleventh consecutive quarter, the Company reported positive adjusted EBITDA from ACMPR operations1. In the quarter, the Company reported $2.2 million in adjusted EBITDA from ACMPR operations1 and $8.4 million for the year, an increase of 53%. During the quarter, the Company refined its definition of adjusted EBITDA to include an EBITDA definition from both ACMPR operations and non-ACMPR operations. The Company defines ACMPR operations as activities, revenue, expenses and adjusted EBITDA from its Aphria One, Aphria Diamond and Broken Coast facilities. The remaining adjusted EBITDA relates to activities at Aphria International. For the quarter ended, the Company incurred an adjusted EBITDA loss of $2.8 million at Aphria International.
The Company remains committed to the responsible use of our shareholders' investment in Aphria, with a focus on profitable execution of our activities. The Company has consistently demonstrated the proven ability to generate positive EBITDA from its operating facilities. As the cannabis industry and the Company transitions from medical use to adult-use in Canada and to significant international exposure, the Company will continue to make targeted, measured and ROI proven investments in its growing portfolio of recreational brands, alternate uses of cannabis, including the transition of cannabis from a product to an ingredient, and international opportunities. However, in the short-term, investments could result in lower corporate adjusted EBITDA1.
During the quarter, the Company bolstered its position as one of the industry's lowest cost producers. For the second consecutive quarter, the Company reported Cash costs of $0.95, remaining below $1.00. As previously disclosed, the Company's "All-in" costs of dried cannabis per gram1 ("All-in costs") increased minorly from $1.56 to $1.60, costs consistent with the additional staff levels added in advance of production capacity increases in the quarter.
The Company believes in full financial reporting transparency to shareholders and will continue to report financial metrics with an appropriate base of grams, or kilograms where relevant, to ensure shareholders are capable of properly comparing metrics amongst industry participants. Further, when reporting non-IFRS measures, the Company will continue to provide detailed disclosure, and transparency tied to its released financial statements.
Revenue for the three months ended May 31, 2018 was $12,026, representing a 17% increase over the prior quarter's revenue of $10,267. The increase in the quarter was driven primarily by reporting Broken Coast results for a full quarter, compared to one month in the prior quarter, increased sales to medical patients at Aphria, all offset by the Company's previously announced decision to discontinue wholesales sales to other licensed producers, to provide increased inventory for the eventual pipeline fill for adult-use and international market opportunities over the next six to nine months. Cannabis oil sales, as a percentage of volume, decreased from 33.1% to 29.2% in the quarter, largely driven by the significantly lower percentage of volume sales of oil purchased by Broken Coast medical patients.
For the year ended May 31, 2018, revenue was $36,917 versus $20,438 in the year ended May 31, 2017, an increase of 81%.
Adjusted gross profit for the fourth quarter was $9,468, with an adjusted gross margin of 78.7%, compared to $4,903 with an adjusted gross margin of 85.7% in the prior year's fourth quarter, representing an increase of over 90%. The increase in the adjusted gross margin from the prior quarter is consistent with the increase in revenues combined with improved cost structures.
Adjusted gross profit for the year was $27,912, with an adjusted gross margin of 75.6%, compared to $15,854, with an adjusted gross margin of 77.6%, representing an increase of over 75%. The increase in adjusted gross profit for the year is consistent with the Company's increase in revenue over the period.
Net loss for the three months ended May 31, 2018 was $4,992 or $0.06 per share, as opposed to a net loss of $2,593 or $0.02 per share in the prior year. The decrease in net income for the quarter relates to $6.5 million in incremental share based compensation, $3.3 million of costs associated with Aphria International, $8.6 million in net losses on the Company's investment portfolio, all offset by almost $13.0 million in incremental gross profit.
Net income for the year ended May 31, 2018 was $29,448 or $0.18 per share, as opposed to $4,198 or $0.04 in the prior year. The increase in net income for the year relates to fair value adjustments associated with biological assets and unrealized gains on the Company's investment portfolio.
Adjusted EBITDA from ACMPR operations1 for the fourth quarter was $2.2 million compared to $2.5 million in the prior year. The decrease in adjusted EBITDA from ACMPR operations1 relates to $1.9 million in incremental selling, general and administrative expenses associated with preparations for adult-use, offset by $1.5 million of additional adjusted gross profit1. Adjusted EBITDA1 loss for the fourth quarter was $0.6 million, compared to adjusted EBITDA1 of $2.5 million in the prior year. The difference between adjusted EBITDA from ACMPR operations and adjusted EBITDA1 is the $2.8 million adjusted EBITDA1 loss on Aphria International operations.
Adjusted EBITDA from ACMPR operations1 for the year ended May 31, 2018 was $8.4 million compared to $5.5 million in the prior year, an increase of 53%. The increase in adjusted EBITDA from ACMPR operations1 relates to capacity increases at Aphria One, the acquisition of Broken Coast offset by larger selling, general and administrative expenses. Adjusted EBITDA1 for the year was $5.6 million compared to $5.5 million in the prior year.
Conference Call On August 1, 2018
The Company invites you to join its analyst conference call on Wednesday, August 1, 2018 at 9:00 am EST to discuss its financial results for the quarter-ended and year ended May 31, 2018. An audio replay of this call will be available until September 1, 2018.
Conference Call Details:
Date:
Wednesday, August 1, 2018
Time:
9:00 am EST
Dial In:
1-888-231-8191
Conference ID:
1886434
Replay:
1-855-859-2056
Replay Passcode:
1886434
We Have A Good Thing Growing.
Now there is some good news :D
There is no new agreement. They announced this MOU weeks after all the other companies got their contracts with BC. If anything, this looks like EMH begged them for a pity contract lol
Most other companies have contracts with most of the provinces. I wonder if it's because EMH doesn't have any product available being the reason why they aren't getting contracts?
I do own shares here, and bought before they great decline:(
lol
Not worried, really, but EMH needs to get their shit together!
The initial MOU references 1,086 kg of cannabis products, which aligns with our production ramp-up while allowing for adequate supply for other provincial supply agreements and our medical strategy. Based on our assessment of the BC market opportunity and our expected production capacity, we are now allowing for approximately 13,000 kg of product allocation for the BC non-medical market over the next year and a half.”
The MOU is for 1000 kg, not 13,000.
I liked how they threw in a random number 13 times bigger than what they signed for.
Nothing wrong with taking some profits, friend. We've been here for years. Don't feel bad about taking some money for your time!
Where is the billboard in Ottawa? :D
Here's the link to the Cramer interview yesterday
https://www.cnbc.com/video/2018/07/11/canopy-growth-ceo-marijuana-drinks-may-come-to-canada-in-2019.html
Doesn't seem like any other company has announced any deals with BC. BC is pretty self sufficient in the cannabis market lol
Happy with the deal :D
Well,
Twelve of the producers are B.C.-based, including Nanaimo's Tilray Inc., Vancouver's Aurora Cannabis Inc. and Whistler Medical Marijuana Corp. Others include Hydropothecary Corp., MedReleaf Corp., and Canopy Growth Corp.
https://www.bnnbloomberg.ca/b-c-signs-agreements-with-licensed-producers-to-supply-legal-marijuana-1.1106582
Yes :o)
Canopy Growth Calls New Brunswick Home - Company Plans to Create 136 High Quality Local Jobs
Thursday, July 05, 2018, 10:00 AM ET
SMITHS FALLS, ON and FREDERICTON, July 5, 2018 /CNW/ - Canopy Growth Corporation (TSX: WEED), (NYSE: CGC) ("Canopy Growth" or the "Company") and the Government of New Brunswick are pleased to announce that with the support of Opportunities New Brunswick, the Company will create 136 local jobs in the booming cannabis sector over the next six-years.
The jobs come as part of a $40 million investment by Canopy Growth into the Company's Fredericton-based production facility that will ensure the supply needs of New Brunswickers and Canadians are met when legalization comes into effect on Oct. 17, 2018.
Operating under the Company's flagship Tweed brand, the facility will support the Company's global operations with high quality, large scale cannabis production capabilities to serve medical and adult-use customers.
"New Brunswick has a world-class cannabis ecosystem and a skilled workforce. It was an easy decision for us to locate here," said Bruce Linton, Chairman and CEO. "New Brunswick has approached the cannabis sector head-on as an opportunity to create economic benefit. We are proud to call New Brunswick home and look forward to building our team here as the facility is completed and brought online."
To staff its new facility Canopy Growth will be seeking to fill a diverse array of roles, including lab supervisors, technologists, growers, post-harvest crews, quality assurance experts, as well as maintenance crews, shipping and on-site retail staff.
To support the creation of these jobs, Canopy Growth is eligible, subject to certain conditions, for an investment of up to $1.3 million from Opportunities NB (ONB), a Crown corporation that seeks to attract and support opportunities to grow the economy and create jobs in the province.
It is estimated by the ONB that creating up to 136 new jobs would produce provincial income tax revenue of $6.5 million and contribute $61.2 million in direct GDP for the province over a six-year period.
"Your government is committed to pursuing the significant economic opportunities within the cannabis sector and to ensuring the legalization of cannabis is introduced in a responsible way," said New Brunswick Premier Brian Gallant. "When world leading companies like Canopy Growth choose to invest in New Brunswick because of our skilled workforce, it reinforces that our multi-year economic growth plan is working."
ONB is projecting the creation of up to 3,000 new cannabis jobs in the province by the end of 2022.
Staying true to its longstanding commitment to Corporate Social Responsibility including partnerships with MADD Canada, the Canadian AIDS Society, Parent Action on Drugs, the University of British Columbia, and a commitment to contribute funds from all online cannabis oil sales to education, Canopy Growth partnered with the New Brunswick Liquor Corporation (ANBL) to roll out a retail training program intended to educate and prepare Cannabis NB retail staff.
Here's to Future (Maritime) Growth.
Anyone else see that 65k block at 40$ disappear?
><
Anyone have the conference call info? :D
Back
,
Canopy Growth introduces Latin American subsidiary Canopy LATAM and announces the acquisition of leading Colombian medical cannabis company
Canada NewsWire
SMITHS FALLS, ON and BOGOTA, Colombia, July 5, 2018
Announcement pairs Canopy Growth's industry leading experience with regional expertise and strategic operations
SMITHS FALLS, ON and BOGOTA, Colombia, July 5, 2018 /CNW/ - Canopy Growth Corporation ("Canopy Growth" or the "Company") (TSX: WEED) (NYSE:CGC) is proud to introduce its Latin American affiliate Canopy LATAM Corporation ("Canopy LATAM"), a wholly owned and controlled subsidiary of Canopy Growth Corporation. Through Canopy LATAM, the Company has acquired Spectrum Cannabis Colombia S.A.S. ("Spectrum Cannabis Colombia"), which previously operated as Colombian Cannabis S.A.S. ("Colombian Cannabis"), expanding the Company's focus on the emerging medical cannabis market of Latin America.
Canopy Growth introduces Latin American subsidiary Canopy LATAM and announces the acquisition of leading Colombian medical cannabis company (CNW Group/Canopy Growth Corporation)
Canopy LATAM will advance medical cannabis throughout Latin America
This announcement represents a leap forward in the Company's growth strategy for its industry leading Spectrum Cannabis brand. As a member of the Canopy Growth family, Canopy LATAM will focus on advancing medical cannabis and capturing market share across the region, home to more than 600 million people, as individual nations modernize their medical cannabis legislation.
Canopy LATAM will be led by Antonio Droghetti as Regional Managing Director, a seasoned executive with extensive experience throughout Latin America. Antonio has previously served as a senior leader for the Grupo Silvio Santos, Managing Director of Inframérica, concessionaire of the airport of Brasilia, and CEO of Lifemed, a company that develops products for hospitals and the healthcare sector. Canopy LATAM has already hired a seasoned team of senior staff to drive the continental strategy forward. This team will oversee in-market entities from across the region and management believes it will position the Company as the leading cannabis focused healthcare organization in Latin America. Canopy LATAM will work closely with Canopy Growth Chief Medical Officer Dr. Mark Ware to build the necessary global clinical program to ensure expeditious entry into these markets. To support his long-term leadership and reflecting the potential for growth across the region, Canopy LATAM will also acquire all of the issued and outstanding shares of Canindica Capital Ltd ("Canindica"), a company controlled by Antonio Droghetti.
And, introducing the newest member of the family, Spectrum Cannabis Colombia
Colombian Cannabis, holder of all required national licenses for the production, manufacturing, and export of cannabis derivatives, has joined the Canopy Growth family as Spectrum Cannabis Colombia. The company will continue to be led by Bibiana Rojas, a proven Colombian executive, MBA graduate from the Wharton School at the University of Pennsylvania, and former Boston Consulting Group project leader.
With its headquarters in the rich agricultural state of Huila, which averages more than 280 sunny days per year, Spectrum Cannabis Colombia will serve as a regional production and processing hub for Canopy LATAM. Further, Spectrum Cannabis Colombia owns a uniquely-positioned 126 hectare farm suitable for growing and future operations. This site receives a steady supply of fresh water from a natural lagoon, has favourable electricity rates, and is currently licensed for 42 hectares (4.5 million sq. ft.) of production capacity for both psychoactive and non-psychoactive (<1% THC) cannabis.
Leveraging the experience of Canopy Growth, Spectrum Cannabis Colombia will build the necessary facilities to provide for value-added production and sales in Colombia and the broader region, with all products produced intended for regional markets in Latin America. Construction is expected to commence by the end of summer 2018 and be complete within twelve months.
Colombia has a proud history of agricultural production and global leadership, from coffee to cacao to roses to orchids, and thanks to progressive cannabis legislation, it is strategically positioned to serve as Canopy Growth's production, processing, and export hub for Latin America with its operations central to the growth strategy for Canopy LATAM.
Announcement builds on existing research activity lead by Spectrum Cannabis Chile
Chile is well known throughout Latin America for its progressive approach to research and development and Spectrum Cannabis Chile will operate as part of the broader LATAM structure, to ensure that the clinical and market access work already underway in the country for several years can be leveraged into expeditious market access. This further supports the Company's strategy of focused in-market entities that leverage the unique benefits of each nation.
Advancing Canopy Growth's operations in Brazil
In line with the significant potential of the region as a whole, Canopy LATAM will advance the organization's strategy for Brazil, the continent's largest country with over 200 million inhabitants.
Initially focused on medical cannabis research, the Brazilian in-market entity will also be led by Antonio Droghetti, Regional Managing Director, Canopy LATAM. Through his experience in building and growing businesses within the country, including in the healthcare sector, Antonio will manage a team focused on the Brazilian market and will direct engagement with regulators.
As the country reviews its medical cannabis legislation, Canopy LATAM will position itself to meet future demand for medical cannabis in this high potential market.
A regional strategy for global success
Management believes the Company is positioned for success with a rapidly evolving Latin American operation built on the progressive regulatory environment and unique natural growing climate of Colombia, paired with R&D emanating from Chile, and regional oversight from Canopy LATAM to build numerous markets across South and Central America. As other Latin American nations update their regulations related to medical cannabis, Canopy LATAM will identify opportunities and actively pursue local operations as part of a focused regional growth strategy while ensuing patients have access to high quality, regulated medical cannabis.
Quotes from leadership
"Today is a historic day for Canopy Growth and a victory for patients across Latin America as we take a leap forward in the future of medical cannabis across the region," said Mark Zekulin, President and Co-CEO, Canopy Growth. "Sustainable regional production coupled with focused in-market entities led by seasoned regional executives is our winning formula, and the launch of Canopy LATAM represents another successfully executed step in our ambitious global growth strategy."
"I'm proud to join the Canopy Growth family and look forward to growing Canopy LATAM into the leading cannabis focused healthcare provider in Latin America," said Antonio Droghetti, Regional Managing Director, Canopy LATAM. "Our region has incredible potential and a real need for controlled, high quality medical cannabis. Leveraging the experience of Canopy Growth and the regional expertise of our country leaders and senior management team, we will collaborate with regulators and ensure that healthcare professionals and patients have access to the information and products they need."
"Thanks to our climate, location, and progressive regulations, we've believed from the beginning that Colombia was uniquely positioned as a leader in the region's emerging medical cannabis industry," said Bibiana Rojas, Managing Director, Spectrum Cannabis Colombia. "It's a proud day as we join Colombian expertise with the world leader in medical cannabis. Together, we can continue to build our Colombian operations with the ambitious goal of serving as a production and processing hub for all of Latin America."
The Fine Print
The Company has issued the former shareholders of Spectrum Cannabis Colombia 1,193,237 common shares in the capital of the Company on closing valued at $34,832,593.
Upon the satisfaction of four further milestones, the Company will issue the former shareholders of Spectrum Cannabis Colombia up to 524,576 common shares in the capital of the Company on the completion of each milestone. Each of the four milestone payments is valued at $15,313,255. The maximum value issuable to the shareholder of Spectrum Cannabis Colombia on closing and pursuant to the four milestones is $61,253,019.
The Company will issue the shareholders of Canindica, a company controlled by Antonio Droghetti, 595,184 common shares in the capital of the Company on closing valued at $18,666,667 based upon the 20 day volume weighted average trading price of the Company's common shares on the TSX on the date prior to the date of closing.
Upon the satisfaction of four different milestones, the Company will issue the shareholders of Canindica additional common shares, with each milestone valued at $9,333,333 and to be paid out in common shares based upon the 20 day volume weighted average trading price of the Company's common shares on the TSX on the date prior to the date each such milestone is satisfied. The maximum value issuable to the shareholder of Canindica on closing and pursuant to the four milestones is $37,333.333.
On July 4, 2023, the Company shall make an extra payment to those parties who had completed all of their milestones by that date. Payment will be made in common shares of the Company based upon the 20-day volume weighted average trading price of the Company's common shares on the TSX on July 4, 2023. The Company will issue the former shareholder of Spectrum Cannabis Colombia common shares of the Company equal to four percent (4%) of the fair market value of Canopy LATAM. The Company will issue to Canindica, such number of common shares of the Company equal to six percent (6%) of the fair market value of Canopy LATAM.
All amounts are in United States dollars unless otherwise noted.
Spectrum Cannabis. Medical Cannabis Simplified.
$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
Gonna be a ridiculous day.
Canopy Growth acquires outstanding shares in BC Tweed Joint Venture
Canada NewsWire
SMITHS FALLS, ON, July 5, 2018
SMITHS FALLS, ON, July 5, 2018 /CNW/ - Canopy Growth Corporation ("Canopy Growth" or the "Company") (TSX: WEED) (NYSE: CGC) is pleased to announce that it has closed its previously announced transaction (the "Transaction") to acquire the remaining 33% stake of BC Tweed Joint Venture Inc. ("BC Tweed"). The consolidation of the two largest federally licensed cannabis facilities in the world into full Canopy Growth ownership cements the Company's commitment to shareholder value through scale production.
Canopy Growth acquires outstanding shares in BC Tweed Joint Venture (CNW Group/Canopy Growth Corporation)
In connection with the Transaction, Canopy Growth has paid $1 million in cash as a non-refundable deposit against the purchase price and has issued $374 million worth of shares in the Company to the minority shareholders of BC Tweed (the "Operators") based on the volume weighted average price per common share for the 20 trading day period ended May 11, 2018 (the "VWAP"). Payments are milestone-based and will be released over three years based upon the achievement of certain production milestones.
In addition, the Company will issue $20 million worth of common shares in the capital of the Company at the same VWAP in connection with an option to acquire certain future infrastructure from the Operators, subject to certain conditions.
"Our BC Tweed operations have allowed us to pursue and finalize large recreational supply contracts across Canada," said Mark Zekulin, President and Co-CEO, Canopy Growth. "Construction and retrofitting work continues at both greenhouse sites to continue on an aggressive pace towards licensing all 3 million sq. ft. of production."
The BC Tweed greenhouses represent a meaningful share of the entire Canadian production landscape with up to 3 million sq. ft. of greenhouse growing capacity. Since the formation of BC Tweed in October of 2017, already over 1.7 million square feet has been licensed for production to meet oncoming recreational cannabis demand across the country.
Certain members of the Operators' management team will continue on at the sites to drive production of high-quality cannabis and operational efficiency at scale.
All amounts are in Canadian dollars.
Here's to Future (BC Bud) Growth.
Not a bad way to start the day!
Agree 100%.
I know what a real country sky looks like.
City living sucks.
YYYYYYEEEEEEEEEEEEEHHHHHAAAAAAAWWWWWWWWWWWWWW