Canopy Growth to merge with Canadian competitor Mettrum
Canada's biggest cannabis grower continues its string of acquisitions
Canada's largest publicly-traded marijuana producer, Canopy Growth Corp., plans to purchase domestic competitor Mettrum in a deal worth $430 million.
The deal would grant Canopy Growth two Health Canada licences to grow marijuana for medical purposes, as well as Mettrum's strains of marijuana and Mettrum Original's line of hemp-based health products.
"Mettrum has established a line of cannabis products that work well in a medical context and will transition naturally into a natural and healthy lifestyle market," said Canopy Growth CEO Bruce Linton in a statement.
The company would be in a position to move quickly, if marijuana is legalized in Canada.
Canopy Growth would also gain 80,000 square feet of growing space at Mettrum facilities in Bowmanville and Clearview, Ontario, bringing its total growing space to 665,000 square feet.
If approved at a January shareholders meeting, the all-stock deal will see Mettrum shareholders receive 0.7132 shares of Canopy Growth per share of Mettrum.
String of acquisitions continues
The deal is the latest in a series of major acquisitions by Canopy Growth, which is the first Canadian marijuana company to be worth more than $1 billion.
Canopy Growth, originally called Tweed, rebranded after acquiring Canadian competitor Bedrocan in 2015. In November, Canopy Growth acquired Quebec-based medical marijuana aspirant Vert Medical, as well as majority ownership of Quebec hemp cultivator Groupe H.E.M.P.CA Inc.
Earlier this week, Canopy Growth also acquired German medial marijuana distributor MedCann.
In its most recent financial report, Canopy Growth reported quarterly revenue of $8.5 million, a 245 per cent increase from the same quarter last year.
The company said it harvested 1,711 kilograms of marijuana in the quarter, and sold 1,169 kilograms or kilgogram equivalents, an annual increase of 267 per cent.
As of Thursday morning, shares in Canopy Growth were up more than 311 per cent year-to-date.