Canopy Growth Corp (OTCMKTS:TWMJF) has signed a definitive agreement for the acquisition of all issued and outstanding Mettrum shares, as it continues to expand its footprint in the fast growing cannabis business. The merger of the two companies will result in the world’s largest diversified cannabis company, with six licensed facilities.
Canopy plans to finance the transaction with the issuance of its own common shares valued at C$43 million. Mettrum shareholders are to receive 0.7132 shares of Canopy Growth for each share that they currently hold.
Ones the transaction is complete, Canopy Growth shareholders will own 77.7% of the new diversified company with the remaining 22.3% going to Mettrum shareholders. The acquisition provides the giant Canadian Cannabis company an opportunity to solidify its position in the fast-growing industry, given it’s 665, 000 sq. ft. of licensed production square footage.
Canopy Growth is also expecting the Mettrum acquisition to lead to cost revenue synergies that would be realized through improved back office efficiencies and improved supply chain management.
“Combining our companies’ complementary market strengths, and management expertise, should result in a more dynamic company well-positioned for emerging recreational and international opportunities, “said Mettrum CEO, Michael Haines.
While the acquisition of Mettrum is expected to bolster Canopy, growth prospects in North America the company has also moved to bolster its prospects in Europe. The Canadian company has already entered into an agreement for the purchase of German-based pharmaceutical distributor, MedCann GmbH Pharma, and Nutraceuticals further as it moves to pursue growth opportunities in Europe.
New Age new Production Facility
Just like Canopy Growth, NEW AGE FARM INC COM NPV(OTCMKTS:NWGFF) is also aggressively pursuing opportunities in the Cannabis space as the race for market share heats up at the back of the recent legalization drive. The company is fresh from completing a new state of the art cannabis production facility at its Washington Green Campus.
The company’s onsite growth, Master Growers has already begun production works at the new site with the first harvesting expected to take place after 90 days.