Canopy Growth Corporation (“Canopy Growth” or the “Company”) (TSX:WEED, NYSE:CGC) is pleased to announce the acquisition of all remaining outstanding shares of its Chilean in-market entity, Spectrum Cannabis Chile SpA (“Spectrum Cannabis Chile”).
This transaction brings Spectrum Cannabis Chile fully under the Canopy Growth umbrella and directly supports the Company’s plans for development within the LATAM region which is home to more than 600 million people. Thanks to progressive regulations and Government support, Chile is known throughout Latin America as an ideal location for medical and pharmaceutical research. The country has more clinical studies per resident than any other in Latin America.
In line with the Company’s strategy of leveraging the strengths of each country, Chile will continue as Canopy LATAM’s regional research and development hub. Currently, Spectrum Cannabis Chile has a pain management focused clinical trial underway. The trial which has been approved at both Phase I and Phase II was designed by Dr. Serio Sánchez, a Chilean doctor, medical cannabis pioneer, and the founder of Cannabis Chile, one of the country’s leading cannabis advocacy groups.
In addition to advancing this clinical trial, Dr. Sánchez has joined the leadership team of Spectrum Cannabis Chile and will bring his extensive experience to the organization by serving as the Chilean medical lead. He will also serve on the Medical Board for Canopy LATAM, the company’s regional headquarters. Having treated over 5000 patients with medical cannabis, Dr. Sánchez has a wealth of experience in evaluating and advancing the recognition as well as use of cannabis-based medicines.
“Chile is an important part of our strategy for this region and completing this acquisition marks another successful step forward in our plan,” said Mark Zekulin, President and CoCEO, Canopy Growth. “Spectrum Cannabis Chile, working closely with the team at Canopy Health Innovations in Canada, will continue to lead regional research activities with a focus on developing additional evidence to support the use of cannabis-based medicines across Latin America and the world.”
This transaction also builds on the recent acquisition of Spectrum Cannabis Colombia which, leveraging the unique growing conditions and favourable regulatory climate in Colombia, will serve as a regional production and export hub for Canopy Growth across Latin America.
As countries across the region update their legislation and further define their domestic medical cannabis markets, Canopy LATAM will continue to pursue market access and a position of leadership, ensuring that patients have access to high quality, regulated medical cannabis.
In exchange for Cannagrow SpA’s 15 percent interest in Spectrum Cannabis Chile SpA, Canopy Growth paid cash consideration of US$750,000. Prior to the acquisition, the Company controlled 85 percent of the issued and outstanding shares of Spectrum Cannabis Chile SpA.
Spectrum Cannabis. Medical Cannabis Simplified.