Canopy Growth Corp (WEED)

[Tweedlede]

Short Form Prospectus information on Canopy's expansion plans. (Lots of great little nuggets of information).

https://www.reddit.com/r/weedstocks/comments/7w8dv6/canopy_short_form_prospectus_information_some/


"With canopy’s latest cash raise they updated the short form prospectus (which can be found on their sedar), haven’t noticed on this sub discussion yet about some of the newer info.

Here’s a few things I noticed in the canopy final short form prospectus posted on sedar on Jan 31, 2018 that may be of interest:

“On December 18, 2017, Canopy announced that it and Canopy Rivers Corporation (“Canopy Rivers”), of which Canopy owns 29.2% (economic) and 89.2% (voting), entered into a definitive joint venture agreement to form a new company, Les Serres Vert Cannabis Inc. (“Vert Mirabel”), together with Les Serres Stphane Bertrand Inc. (“Bertrand”), a large-scale tomato greenhouse operator in Mirabel, Quebec. Bertrand currently produces tomatoes and other vegetables under 700,000 square feet of modern greenhouse. The entire greenhouse will be upgraded and retrofitted for cannabis production by April 2018. With the assistance and guidance of Canopy, the application for this site has been submitted, and, subject to Health Canada and other standard regulatory approvals, Canopy anticipates being ready to begin production by May 2018” (Pg 13)

“The Corporation initially has a 65% ownership in Spectrum Denmark but is expected to own 100% of Spectrum Denmark once all milestones are completed.” (Pg 14)

“The Corporation has the following planned expenditures to which the net proceeds from the Offering will be applied:

Canadian capability and capacity expansion $141,000,000

International capability and capacity expansion $ 49,100,000

Total: $190,100,000” (Pg 15)

“International projects include the announced greenhouse fit-up in Denmark and potentially in Germany. “(Pg 15)

“Canadian domestic expansion is expected to be completed over the next 6 to 15 months. Proceeds of $141,000,000 are expected to be allocated to this effort to fit up new facilities and to update, modernize and expand existing facilities in Canada. The Canadian domestic expansion includes approximately $102,000,000 to be invested in the Corporation’s largest Ontario facilities, in order of magnitude, Smiths Falls, Ontario (expansion beyond the currently licensed space for new grow rooms, new production areas for future product categories, storage, and administrative offices) and Niagara-on-the-Lake Ontario, (expansion and modernization of greenhouse operations on the current footprint and the adjacent recently acquired greenhouse). The remaining $39,000,000 will be applied to Fredericton, New Brunswick (complete fit-up of the recently leased building and readying for Health Canada license approvals), and other improvement projects identified in the existing occupied space in Smiths Falls, Ontario, and for Bowmanville, Ontario and Yorkton, Saskatchewan and to the initial planning and development of the Newfoundland facility for local production in that province. The fit-up for Edmonton, Alberta, Mirabel, Quebec, and the two BC Tweed JV facilities are funded from existing resources.” (Pg 16)

“Current projects related to international expansion are expected to be completed over the next 18-month period. Proceeds of $49,100,000 are expected to be allocated to international capability and expansion plans related to the construction of facilities and the fit-up of existing facilities in the international jurisdictions, in each case as and when approved in accordance with the regulatory requirements of each such jurisdiction. The international capability and expansion plans primarily relate to the construction of greenhouses in Denmark, Jamaica and Brazil, amounting to approximately $32,000,000 in total. In addition, approximately $17,100,000 will be applied to the fit-up of a German facility if approved. The Corporation is active in each of these regions as permitted under federal regulations.” (Pg 16)

“The international construction work in Denmark and Jamaica has already commenced. The Corporation acquired a greenhouse in Denmark that is approximately 300,000 square feet and anticipates the ability to add up to 200,000 square feet of more grow space when market conditions warrant. In Jamaica, the Corporation is presently building the first 5,000 square feet greenhouse on the site, located outside of Kingston, which may be expanded at a later date depending on market conditions. The expansion plans relating to construction in Brazil are not yet determined. The Corporation anticipates other projects to commence, when approvals are in place, over the next 6 to 12 months, and completed in the next 18 months. Management believes the proceeds from this Offering will be sufficient to complete the expansion projects as described.” (Pg 16)"