Canopy enters into agreement to acquire Mettrum
Dec. 1, 2016, Smiths Falls, Ont. – Canopy Growth Corporation and Mettrum Health Corp. have entered into a definitive arrangement agreement pursuant to which Canopy Growth will acquire all of the issued and outstanding shares of Mettrum.
The deal, if approved, would create a world-leading diversified cannabis company with six licensed facilities, and a licensed production footprint of approximately 665,000 square feet, with significant acreage for expansion.
The total transaction is valued at approximately $430 million and will be satisfied by the issuance of common shares in Canopy Growth.
“From day one, Canopy Growth has viewed production capacity, brand diversity, and highly skilled management as the foundational aspects of our business,” said Bruce Linton, chairman and CEO of Canopy Growth.
“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. Their substantial production facilities will add to our growing production platform as we expand to meet the needs of patients, and their experienced personnel will help Canopy Growth drive our vision forward to the next level.”
Canopy Growth and Mettrum have enjoyed a collaborative industry relationship working on a number of patient and industry advocacy efforts, said Michael Haines, CEO of Mettrum. “Combining our companies’ complementary market strengths and management expertise should result in a more dynamic company well-positioned for emerging recreational and international opportunities.”
Closing remains subject to approval of the shareholders of both Canopy Growth and Mettrum, court approval, the approval of the TSX, applicable regulatory approvals and the satisfaction of certain other closing conditions customary in transactions of this nature.
Additional details of the Arrangement will be provided to Mettrum and Canopy Growth shareholders in respective information circulars to be mailed in December 2016. It is expected that shareholder meetings and closing of the Arrangement will occur in January 2017.
The boards of directors of both Canopy Growth and Mettrum have unanimously approved the transaction and recommend that shareholders vote in favour of the transaction.
ABOUT CANOPY GROWTH CORPORATION
Canopy Growth is a world-leading diversified cannabis company, offering diverse brands and curated cannabis strain varieties in dried and oil extract forms.
Through its wholly owned subsidiaries, Tweed, Tweed Farms, and Bedrocan Canada, Canopy Growth operates three state-of-the-art production facilities with over half a million square feet of indoor and greenhouse production capacity.
For more information visit www.canopygrowth.com.
ABOUT METTRUM HEALTH CORP.
Mettrum Health Corp. is a Tier 1 Industry Issuer listed on TSX Venture Exchange. Mettrum Ltd., a wholly owned subsidiary of Mettrum Health Corp., is a Toronto-based company and a licensed producer of medical cannabis under the ACMPR. It has three production facilities in Ontario.
In addition, through its wholly-owned subsidiary Mettrum Hempworks, Mettrum is also a licensed producer and distribution of industrial cannabis (hemp) products, including Mettrum’s functional food line, Mettrum Originals™, under the Industrial Hemp Regulations (Canada) issued pursuant to the Controlled Drugs and Substances Act (Canada).