Canopy Growth Corp. has agreed to purchase Canadian licensed medical cannabis producer Mettrum Health Corp., in a deal worth more than $320 million, RTTNews reports. Both companies are traded on the Toronto Stock Exchange and the transaction will be satisfied by the issuance of Canopy Growth common shares.
Under the terms, Mettrum shareholders will be entitled to 0.7132 Canopy Growth shares per common share of Mettrum. The deal must be approved by a court and both companies’ shareholders, after which Mettrum would become a wholly-owned Canopy Growth subsidiary.
The deal would give Canopy Growth six licensed medical cannabis facilities, upping its production footprint to about 665,000 square feet, with expansion possibilities. The company, once combined, would have 39,730 patients, representing nearly half of Canada’s medical cannabis patient base, according to a Financial Post report.
“From day one, Canopy Growth has viewed production capacity, brand diversity, and highly-skilled management as the foundational aspects of our business,” Bruce Linton, Chairman and CEO of Canopy Growth, said in the Post report. “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.”
Earlier this week, Canopy Growth announced an agreement to acquire Germany-based pharmaceutical distributor MedCann.