Canopy Growth (CGC) And Indiva Announce Agreement To Position Wana Gummies For Continued North American Brand Leadership
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Canopy Growth Corporation ("Canopy Growth" or the "Company") (TSX: WEED) (NASDAQ: CGC), a leading global cannabis company, and Indiva Limited ("Indiva") (TSXV: NDVA), the leading Canadian producer of cannabis edibles and other cannabis products, and its subsidiary, Indiva Inc., announced today that they have entered into a license assignment and assumption agreement (the "Assignment Agreement") providing Canopy Growth exclusive rights and interests to manufacture, distribute, and sell Wana™ branded products in
Simultaneously, to support continuity of quality supply and aligned to Canopy Growth's asset light strategy for sourcing of cannabis 2.0 formats, Canopy Growth and Indiva also entered into a contract manufacturing agreement (the "Manufacturing Agreement"), under which Canopy Growth will grant Indiva the exclusive right to manufacture and supply Wana™ branded products in
"We are excited to form this investment and contract manufacturing partnership with Canopy Growth, and we look forward to continuing to produce Wana gummies for many years to come," said
"This is a great step forward in solidifying both Wana's brand leadership, as well as integrating Wana with Canopy Growth's strong presence in
As consideration for Indiva entering into the Assignment Agreement and other related agreements in respect of the transactions described herein, Indiva will complete a non-brokered private placement offering of common shares ("Common Shares") of Indiva whereby Canopy Growth will subscribe for 37,230,000 Common Shares for an aggregate purchase price of
Indiva intends to use the net proceeds of the Private Placement to satisfy its existing obligations under its license to manufacture and sell Wana™ branded products in
Following the closing of the Private Placement, Canopy Growth will have the ability to nominate an individual as a Board observer on the Board of Directors of Indiva. Canopy Growth and Indiva will also enter into a customary standstill and voting support agreement.
The Private Placement is expected to close on or before
Immediately prior to the Private Placement, Canopy Growth and its affiliates held no Common Shares. Upon the closing of the Private Placement it is anticipated that Canopy Growth and its affiliates will exercise control and direction over 19.99% of the issued and outstanding Common Shares. Canopy Growth and its affiliates do not currently own any convertible securities of Indiva. The Common Shares are being acquired for investment purposes and, as of the date of this news release, Canopy Growth and its affiliates have no current intention to acquire control or direction over additional securities of Indiva above 19.99% of the issued and outstanding Common Shares, either alone or together with any joint actors.
The securities to be offered pursuant to the Private Placement have not been, and will not be, registered under the
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1 | Source: Internal proprietary market share tool that utilizes point of sales data supplied by government boards and third-party data providers |
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