Transaction supports the Company’s focus on achieving profitability through streamlined operations in Canada
Canopy Growth Corporation (“Canopy Growth” or the “Company”) (TSX: WEED) (NASDAQ: CGC) announced today that it has closed its previously announced transactions with OEG Retail Cannabis (“OEGRC”) and 420 Investments Ltd. (“FOUR20”) to divest its retail business across Canada, which includes the stores operating under the Tweed and Tokyo Smoke retail banners.
“The divestiture of our Canadian retail business marks an important step forward on our path to profitability and furthers Canopy Growth’s focus on generating revenue growth in the Canadian market,” said David Klein, CEO, Canopy Growth. “These retail locations will continue operating under the experienced leadership of OERGC and FOUR20 under their respective retail brands to serve Canadian consumers with high-quality in-store experiences.”
Overview of the OEGRC Transaction:
- OEGRC has acquired ownership of 23 Tokyo Smoke and Tweed store locations across Manitoba, Saskatchewan, and Newfoundland and Labrador.
- As part of the OEGRC Transaction, the Tokyo Smoke brand has been transferred to OEGRC and all purchased stores currently branded as Tweed will be rebranded.
- The master franchise agreement between the Company and OEGRC pursuant to which OEGRC licenses the Tokyo Smoke brand in Ontario has been terminated effective on closing of the OEGRC Transaction.
Overview of the FOUR20 Transaction:
- FOUR20, a licensed cannabis retailer, acquired five of the Company’s corporate stores in Alberta.
As previously announced, Canopy Growth will continue to own and operate the iconic Tweed brand and will remain focused on bringing a portfolio of mainstream flower, pre-rolled, infused gummies, and beverage options to consumers in Canada.