Canopy Growth Corporation

Canopy Growth Corporation

Type	Medical Marijuana
Traded as	TSX: CGC
Industry	Medical Marijuana
Predecessor	Tweed Marijuana Inc.
Founded	2014
Founder	Bruce Linton
Headquarters	Smiths Falls, Ontario, Canada
Area served	Canada
Key people	Bruce Linton, John K. Bell, Barry Fishman, Murray Goldman, Chris Schnarr, Mark Zekulin, Mark Wayne, Tim Saunders Amanda Daley, Hilary Black, Rade Kovacevic, Brian Greenleaf
Products	Medical cannabis
Website	www.canopygrowth.com www.tweed.com www.bedrocan.ca

Canopy Growth Corporation (CGC), formerly Tweed Marijuana Inc., is a medical marijuana company based in Smiths Falls, Ontario. It is the first federally regulated, publicly traded cannabis producer in North America, traded on the Toronto Stock Exchange as CGC. Since marijuana is currently legal in Canada only for medical purposes, growers such as CGC are licensed by Health Canada under the Access to Cannabis for Medical Purposes Regulations (ACMPR).^[1] A multi-licensed, geographically diverse marijuana producer, the company was described as "one of the world’s — and Canada’s first — premier exporters of marijuana" by the Financial Post news organization in December 2016.^[2]

CGC originally operated as Tweed Marijuana Inc. but rebranded to Canopy Growth Corp. in September 2015 with two established brands.^[3] Specifically, CGC is the parent company of licensed cannabis producers Tweed Inc., Tweed Farms Inc., and Bedrocan Canada Inc. with a combined approved growing platform of over 550,000 sq. ft. of production space. The company has also acquired part or full ownership of other cannabis producers and distributors.

About Tweed Inc. (Tweed)

Tweed operates out of the former Hershey's chocolate factory in Smiths Falls, Ontario,^[4] and operates the Tweed Farms greenhouse in Niagara-on-the-Lake.^[5] 1 Hershey Drive in Smiths Falls consists of eight buildings representing over 470,000 square feet of manufacturing and distributing space, situation on approximately 39.6 acres of land. Tweed's operations occupy 180,000 square feet of this space, 168,000 of which is licensed for marijuana production.^[4]

Tweed Farms is located in the heart of Southwestern Ontario’s wine country in Niagara-on-the-Lake. By using the sun’s energy and closed loop water systems, the greenhouse at Tweed Farms is an environmentally friendly operation capable of growing large quantities of natural medical marijuana. The site currently houses 350,000 square feet of greenhouse.^[4]

In March 2016, Tweed Farms received its license to produce, possess and ship dried marijuana. The license completes a successful phase of infrastructure enhancements that have increased the independence of the Tweed Farms site and transformed it from a broad-scale production facility to a vertically integrated campus capable of growing, trimming, curing and storing product. A 25,000 sq. ft. processing and storage building has been added to the existing 350,000 sq. ft. greenhouse. Tweed Farms will seek a final sales license as soon as its first crop has been harvested and tested for sale.^[6]

Tweed was voted #1 best customer service at the 2015 Canadian Cannabis Awards.

Tweed’s product lines include whole-flower cannabis, 10:1 Cannabis Oils, and complementary Tweed Pantry baking line^[7] of products.^[8]

About Bedrocan Canada Inc. (Bedrocan)

Bedrocan BV pioneered medical cannabis in Holland through decades of selection and refinement, leading to standardized, whole bud cannabis strains.^[9] Bedrocan Canada supplies the same standardized strains to the Canadian market through exclusive licensing rights to the American continents, an arrangement it will also enjoy for all future genetic advancements. Due to its consistency over time, Bedrocan’s strains have been used in clinical research in seven European countries.^[10] Bedrocan Canada recently launched one of the largest clinical cannabis studies in the world, the EQUAL Study, to evaluate quality of life before and after medical cannabis use.^[11]

Bedrocan Canada’s facility is based in Toronto. Its history rooted in the Netherlands-based company Bedrocan BV, the trusted supplier of cannabis to the Dutch Ministry of Health for 14 years. The company has been growing cannabis for over two decades, and is the only company in the world that has the proven capability of producing standardized whole-flower medical cannabis. Through a combination of stable plant genetics and proprietary, automated, high-tech production techniques, Bedrocan has the capacity to grow varieties that contain consistent levels of cannabinoids and terpenes every time.^[9]

Bedrocan's contributions to medical marijuana research include its participation in the EQUAL Study.^[11] Bedrocan and Tweed have also provided funding for the Quebec Cannabis Registry and its associated McGill University research initiative.^[12]

Other advocacy work by Bedrocan Canada includes its success generating an e-petition to remove sales tax from medical cannabis,^[13] and a program dedicated to advancing insurance coverage for cannabis.

Bedrocan announced the start of True Compassionate Pricing in January 2016, offering all its products for $5 / gram.^[14][15] The company continues to build on this program, announcing new initiatives like same-day shipping in Toronto.^[16]

CGC Timeline

• In January 2014, Tweed Marijuana Inc. was granted the license to legally produce marijuana for registered users of cannabis.^[17]
• In April 2014, the "Marihuana for Medical Purposes Regulations (MMPR)" came into effect, with Tweed's NOTL facility being the first approved.
• In June 2014, the Company acquired Prime1 Construction Services Corp.
• August 2014, Chuck Rifici was removed by the board from his position as President of Tweed Marijuana Inc.
• February 2015, Tweed Marijuana Inc. launches pilot project with Indoor Harvest Corp. to install a state-of-the-art aeroponic system for research and development.
• June 2015, Tweed acquires Canadian Licensed Producer Bedrocan Cannabis Corp.^[18]
• September 2015, Tweed Marijuana Inc. renames itself Canopy Growth Corporation, with Tweed Inc., Tweed Farms Inc. and Bedrocan Canada Inc. remaining separate subsidiaries under the CGC parent company.
• October 2015, Tweed announces a partnership with DNA Genetics, one of the most widely recognized and acclaimed global brands in cannabis breeding and genetics.
• January 2016, Bedrocan announces the start of True Compassionate Pricing, offering all its products for $5 / gram.^[14]
• February 2016, Tweed strikes a deal with rapper and global cannabis icon Snoop Dogg,^[19][20][21] in a deal that will grant the company exclusive rights to use certain content and brands owned by the rapper’s company, LBC Holdings.
• February 2016, Tweed receives its license to sell cannabis oils, launching the 10:1 Cannabis Oils product line. The company also announces it is founding an education fund to promote safe use, starting with a $50,000 contribution and donating $1 from every oil bottle sale to the fund.^[22]
• March 2016, Tweed Farms is now licensed to produce, possess and ship dried marijuana at its facilities in Niagara-on-the-Lake, Ontario. The license completes a successful phase of infrastructure enhancements that have increased the independence of the Tweed Farms site and transformed it from a broad-scale production facility to a vertically integrated campus capable of growing, trimming, curing and storing product. A 25,000 sq. ft. processing and storage building has been added to the existing 350,000 sq. ft. greenhouse. Tweed Farms will seek a final sales license as soon as its first crop has been harvested and tested for sale.^[6]
• May 2016, Tweed announces a partnership with AusCann Group Holdings Ltd. (AusCann), an early leader in the nascent Australian medical cannabis industry and the first international deal of its kind for a Canadian cannabis company.^[23]
• May 2016, Bedrocan Canada hosts its inaugural masterclass for medical professionals.^[24]
• May 2016, Tweed and Bedrocan announce plans to fund a national campaign to raise awareness of impairment in relation to operating a motor vehicle under the influence of cannabis. The campaign will be developed and administered by two of the country's leading organizations in promoting evidence based drug policy and safe driving, the Canadian Drug Policy Coalition (CDPC) and Mothers Against Drunk Driving (MADD Canada).^[25]
• June 2016, Canopy Growth Corporation receives conditional approval to list shares on the TSX, graduating from the TSX Venture Exchange.^[26]
• July 2016, CEO Bruce Linton divests 400 K in shares to cover financial obligations related to ownership in the Tweed building and related financing that went unaddressed after more than three years.^[27]
• August 2016, the government of Canada releases new regulations governing cannabis production that re-instate a patient's right to personally produce their own cannabis.^[28][29]

CGC acquisitions and expansion in 2016

Subsequent acquisitions for this corporation included Vert Medical, the German cannabis distributor MedCann and a majority interest in Quebec's Groupe H.E.M.P.CA Inc. In early December 2016, Canopy Growth Corp. announced a friendly takeover bid of another licensed Ontario-based producer, Mettrum Health (CVE:MT). This arrangement is pending approval by Mettrum's Board in January 2017.^[30]

In addition to sales in the domestic market, Canopy Growth began selling medical cannabis products in Germany and Brazil in 2016. The stock price of CGC increased dramatically in the last quarter of 2016. However, the company was operating at a loss, presumably because of the significant expenditures it was making to acquire competitors in preparation for significantly increased cannabis demand by the recreational use market expected to commence in 2018. (As discussed in Cannabis in Canada, legislation to legalize cannabis for recreational use is expected to be introduced in Canada's federal Parliament in spring 2017 with actual sales to casual users likely to commence in January 2018.)^[31][32]

According to The Globe and Mail's Globe Investor newsletter, "Canopy Growth Corp had a net profit margin of -28.98%" but Reuter's survey of four market analysts indicated a consensus rating of Buy in early December 2016.^[33]

External links

• Canopy Growth Website
• Tweed Website
• Bedrocan Website
• Tour of Smiths Falls Facility - Vice Magazine
• Tour of Smiths Falls Facility - The New York Times

References

1. "Authorized Licensed Producers for Medical Purposes". Health Canada - Drugs and Health Products. Health Canada. 23 November 2016. Retrieved 2 December 2016.
2. MidasLetter (1 December 2016). "Canopy takes over Mettrum, here's who might be next in its sights". Financial Post. Toronto. Retrieved 2 December 2016.
3. Koven, Peter (17 September 2016). "Tweed Marijuana renames itself Canopy Growth Corp as it charts growth path at AGM". Financial Post. Toronto. Retrieved 2 December 2016.
4. Tweed. "About Us.". Tweed. Retrieved 2016-06-10.
5. "Health Canada approves NOTL marijuana facility".
6. "Tweed Farms Achieves Major Milestone - 375 000 sq. ft. Now Approved for Dried Marijuana Production". www.newswire.ca. Retrieved 2016-06-10.
7. "Tweed Pantry Line Launches to Complement 10:1 Cannabis OilsTM - Bedrocan Canada Updates Oils". www.newswire.ca. Retrieved 2016-06-10.
8. Tweed. "Tweed Shop". Tweed. Retrieved 2016-06-10.
9. "Bedrocan". About Bedrocan. Retrieved 2016-06-10.
10. "Bedrocan". Researchers. Retrieved 2016-06-10.
11. "Bedrocan". EQUAL Study. Retrieved 2016-06-10.
12. "World first: Launch of Quebec registry for users of medical cannabis | Quebec Cannabis Registry". registrecannabisquebec.com. Retrieved 2016-06-10.
13. "CMCIA supports e-petition to remove sales tax from medical cannabis". www.newswire.ca. Retrieved 2016-06-10.
14. "Bedrocan Canada Launches True Compassionate Pricing - Reinforces Its Commitment To Affordable Medicine". www.newswire.ca. Retrieved 2016-06-10.
15. "Bedrocan". True Compassionate Pricing. Retrieved 2016-06-10.
16. "Bedrocan Canada and Canadian Cannabis Clinics Address Toronto Cannabis Patients". www.newswire.ca. Retrieved 2016-06-10.
17. "Medical marijuana company Tweed Inc. to seek TSX listing". CBC News.
18. "Marijuana merger the first of many needed to weed out industry". Financial Post.
19. "Tweed-Snoop Dogg joint partnership earns kudos: 'A smart move,' advertising exec says - Local - Ottawa Business Journal". www.obj.ca. Retrieved 2016-06-10.
20. "Snoop Dogg deal seen as pre-emptive strike by Tweed at legalized pot market". www.cbc.ca. Retrieved 2016-06-10.
21. "Tweed Partners with Iconic Cannabis Connoisseur Snoop Dogg". www.newswire.ca. Retrieved 2016-06-10.
22. "Tweed Launches 10:1 Cannabis Oils™ - Launch coincides with first-of-its kind commitment to responsible use education funding by Canopy Growth Companies". www.newswire.ca. Retrieved 2016-06-10.
23. "Canopy Growth Corporation and AusCann Group Holdings". www.newswire.ca. Retrieved 2016-06-10.
24. "Bedrocan Canada Hosts Masterclass for Medical Professionals". www.newswire.ca. Retrieved 2016-06-10.
25. "Tweed and Bedrocan Sponsor Safe Driving Campaign with MADD Canada". www.newswire.ca. Retrieved 2016-06-10.
26. "Canopy Growth Corporation receives Conditional Approval to List Shares on TSX". www.newswire.ca. Retrieved 2016-06-10.
27. "Canopy Growth CEO Sells $1.1mm in Stock". New Cannabis Ventures. Retrieved 2016-08-14.
28. "Smiths Falls medical marijuana producer shrugs off competition from home growers". Retrieved 2016-08-14.
29. josh_wingrove, Eric Lam ericlamTO Josh Wingrove. "Marijuana Stocks Slump As Canadian Court Nixes Restrictions". Bloomberg.com. Retrieved 2016-08-14.
30. Israel, Solomon (1 December 2016). "Canopy Growth to merge with Canadian competitor Mettrum - Canada's biggest cannabis grower continues its string of acquisitions". CBC News. CBC. Retrieved 2 December 2016. Mettrum has established a line of cannabis products that work well in a medical context and will transition naturally into a natural and healthy lifestyle market
31. Cain, Patrick (9 October 2016). "How will legal pot be sold? Three things that might happen, and one that won't". Global News. Global News, a division of Corus Entertainment Inc. Retrieved 1 December 2016. I see some kind of government control at the level of distribution, but I’m not sure what that’s going to look like. I find it hard to believe that they are going to allow dispensaries to simply cross over in their current form.
32. Cullen, Catherine (30 November 2016). "8 burning questions about the coming federal pot report Who can buy and sell pot, where it will be sold, and who gets the profits, all up in the air". CBC News. CBC. Retrieved 30 November 2016.
33. . The Globe and Mail http://www.theglobeandmail.com/globe-investor/markets/stocks/news/?q=CGC-T. Retrieved 2 December 2016. Canopy Growth Corporation, formerly Tweed Marijuana Inc., is a diversified cannabis company. Missing or empty |title= (help)