Canopy goes for Czech mate
Apr 15, 2018
The Weed King expands its empire:
("Canopy Growth" or the "Company") is pleased to announce that the Company has signed definitive agreements to acquire Annabis Medical s.r.o ("Annabis Medical"), expanding the Company's focus into another emerging medical cannabis market. This transaction is scheduled to close Monday, April 16, 2018.
Annabis Medical is the leader in the Czech Republic's medical cannabis industry and currently imports and distributes cannabis products pursuant to federal Czech licenses, with products for sale through pharmacy channels across the Czech Republic. Its founder and CEO, Dr. Robin Kazík, will continue to lead and grow the Czech subsidiary as part of the larger Canopy Growth family.
So, it looks like the Czech company doesn't lose any employees and it gets the largest marijuana firm on Earth as its supplier. Win-win.
Under the terms of the agreement, the Company will issue Dr. Kazík 50,735 common shares in the capital of the Company valued at $1,491,882.70 on closing and, subject to meeting certain milestones, will issue up to an additional 34,758 common shares valued at $1,022,080.00, based on the 5 day VWAP of $29.40519 on April 5, 2018. The total value of the consideration payable under the terms of the agreement is approximately $2,513,962.70. All amounts are in Canadian dollars unless otherwise noted.
That's it!? Considering the hundreds of millions of dollars of dilution by Aphria and Aurora in the last few months, this acquisition is shockingly cheap.
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