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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. Tweed Farms acquired its license to sell dried medical cannabis in October 2016. <ref>{{cite web|url=https://cdn.shopify.com/s/files/1/0994/1238/files/Farms_Sales_6000kg_License.pdf?3522917953086602984|publisher=Canopy Growth Corp.}}</ref> The site housed 350,000 square feet of greenhouse.<ref name=":0" /> 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. Tweed Farms acquired its license to sell dried medical cannabis in October 2016. <ref>{{cite web|url=https://cdn.shopify.com/s/files/1/0994/1238/files/Farms_Sales_6000kg_License.pdf?3522917953086602984|publisher=Canopy Growth Corp.}}</ref> The site housed 350,000 square feet of greenhouse.<ref name=":0" />

==Operations in Europe==
In addition to operations in Canada, Canopy Growth has a partnership agreement in Spain with pharma company Alcaliber S.A.,<ref>https://www.canopygrowth.com/international-footprint/alcaliber/</ref> owns a subsidiary in Germany that imports medical cannabis, Spektrum Cannabis GmbH<ref>https://www.canopygrowth.com/international-footprint/spektrum-cannabis/</ref> and has a partnership with Spectrum Cannabis Denmark ApS, a medical cannabis grower.<ref>https://www.canopygrowth.com/international-footprint/spectrum-cannabis-denmark/</ref> The company is also involved in the business in Jamaica<ref>https://www.newswire.ca/news-releases/canopy-growth-increases-international-footprint-by-expanding-into-jamaican-medical-market-with-the-introduction-of-tweed-ja-653001313.html</ref>, Chile and Brazil,<ref>http://business.financialpost.com/business/pair-of-deals-point-towards-canadian-cannabis-interest-in-south-america</ref> as well as in
Australia.<ref>https://www.newswire.ca/news-releases/canopy-growth-enters-landmark-research-and-production-mou-with-australian-victoria-state-government-669625413.html</ref> In mid April 2018, the company was concluding the acqusition of Annabis Medical, an importer and distributor of medical cannabis in the Czech Republic.<ref>https://midasletter.com/2018/04/canopy-growth-expands-european-footprint-with-significant-czech-republic-deal/</ref>


==CGC Timeline== ==CGC Timeline==

Revision as of 11:26, 16 April 2018

Canopy Growth Corporation
Company typeMedical Marijuana
Traded asTSX: WEED
IndustryMedical Marijuana
PredecessorTweed Marijuana Inc.
Founded2014 (2014)
FoundersBruce Linton and Chuck Rifici
HeadquartersSmiths Falls, Ontario, Canada
Area servedCanada
Key peopleBruce Linton, John K. Bell, Barry Fishman, Murray Goldman, Chris Schnarr, Mark Zekulin, Mark Wayne, Tim Saunders Amanda Daley, Hilary Black, Rade Kovacevic, Brian Greenleaf
ProductsMedical cannabis
RevenueIncrease C$ 40 million (2017)
Operating incomeDecrease C$ -15 million (2017)
Net incomeDecrease C$ -17 million (2017)
Total assetsIncrease C$ 678 million
Total equityIncrease C$ 615 million
Websitewww.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, founded by Bruce Linton and Chuck Rifici in 2014. Linton is now the Chairman and CEO while Marc Wayne is the President. The company was the first federally regulated, publicly traded cannabis producer in North America, traded on the Toronto Stock Exchange as WEED. 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). 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. By April 2018, the company had a market value of C$6.7 billion; revenue in the previous 12 months totaled C$69 million.

The company rebranded to Canopy Growth Corp. in September 2015 with two established brands. Specifically, CGC is the parent company of licensed cannabis producers Tweed Inc., Tweed Farms Inc., Bedrocan Canada Inc., as well as newly acquired Mettrum Health Corp, giving CGC a combined growing platform of over 665,000 sq. ft. of production space. The company has also acquired part or full ownership of other cannabis producers and distributors.

Cannabis in Canada will be legal for recreational use after the Senate confirms the legislation passed by the House of Commons, most likely in summer of 2018. That will significantly increase the market demand for marijuana. By that time, Canopy may not be the industry leader in terms of size. In January 2018, Aurora Cannabis concluded an agreement to buy competitor CanniMed in advance of the anticipated growth in the market. If the deal is completed, the new company will be the largest in Canada.

About Tweed Inc. (Tweed)

Tweed operates out of the former Hershey's chocolate factory in Smiths Falls, Ontario, and operates the Tweed Farms greenhouse in Niagara-on-the-Lake. The property at 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. In January 2017, Tweed purchased the entirety of 1 Hershey Drive giving them all 470,000 sq ft, and have begun expansion projects for more production space. The company was started by Bruce Linton in 2015, with financing provided by Alterna Savings & Credit Union Ltd. 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.

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. Tweed Farms acquired its license to sell dried medical cannabis in October 2016. The site housed 350,000 square feet of greenhouse.

Operations in Europe

In addition to operations in Canada, Canopy Growth has a partnership agreement in Spain with pharma company Alcaliber S.A., owns a subsidiary in Germany that imports medical cannabis, Spektrum Cannabis GmbH and has a partnership with Spectrum Cannabis Denmark ApS, a medical cannabis grower. The company is also involved in the business in Jamaica, Chile and Brazil, as well as in Australia. In mid April 2018, the company was concluding the acqusition of Annabis Medical, an importer and distributor of medical cannabis in the Czech Republic.

CGC Timeline

  • In January 2014, Tweed Marijuana Inc. was granted the license to legally produce marijuana for registered users of cannabis.
  • 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. Co-founder Bruce Linton subsequently took over the position.
  • February 2015, Tweed Marijuana Inc. launched a 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.
  • September 2015, Tweed Marijuana Inc. renamed 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 announced a partnership with DNA Genetics, one of the most widely recognized and acclaimed global brands in cannabis breeding and genetics.
  • January 2016, Bedrocan announced the start of True Compassionate Pricing, offering all its products for $5 / gram.
  • February 2016, Tweed struck a deal with rapper and global cannabis icon Snoop Dogg, in a deal that will grant the company exclusive rights to use certain content and brands owned by the rapper’s company, LBC Holdings.
  • March 2016, Tweed Farms was now licensed to produce, possess and ship dried marijuana at its facilities in Niagara-on-the-Lake, Ontario. The license completed 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.
  • July 2016, CEO Bruce Linton divested 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.
  • August 2016, the government of Canada released new regulations governing cannabis production that re-instated a patient's right to personally produce their own cannabis.
  • November 2016, became the first company in the marijuana industry to achieve elusive $1 billion "unicorn" status. They had a $2 billion valuation on November 16, one week after eight US states passed ballot initiatives legalizing marijuana in some form.
  • January 2017, Tweed acquired an entire facility at 1 Hershey Drive in efforts to expand production space.
  • February 2017, its valuation was $943 million. According to the 2016 year end report, the patient base increased by 260 per cent and revenue increased by about 180 percent vs. 2015. The company's acquisition of competitor Mettrum Health Corp., for $430 million, was awaiting final regulatory approval.
  • March 2017, added to TSX/S&P composite index
  • May 2017, acquired Tweed Grasslands, formally rTrees Producers Limited Inc., awaiting licensing from Health Canada
  • October 2017, Constellation Brands agreed to invest $245 million Canadian dollars ($191 million) in the company. The company becomes the largest single shareholder in Canopy Growth.
  • April 2018, expanded growing capacity in Canada through an agreement with Canopy Rivers to convert a greenhouse in Mirabel, Quebec, to cannabis production and an agreement with BC Tweed to develop 1.3 million square feet of growing area in British Columbia. Even without those additional plans, the company had over 665,000 square feet of growing capacity and supported operations in seven countries.

Acquisitions and expansion

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). The deal, pending the approval of Mettrum's board, was closed in January 2017. .

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.)

On January 27, 2017, Canopy and Mettrum Health Corp. announced that the shareholders of both had approved the takeover of Mettrum by Canopy for $430 million. The deal was awaiting approval by the Ontario Superior Court of Justice. At around the same time the deal had closed, Canopy completed the purchase of the entire former Hershey’s chocolate factory, adding 50 percent more production space at that location. The takeover of Mettrum has resulted in "the creation of a world-leading diversified cannabis company with six licensed facilities and a licensed production footprint of approximately 665,000 sq. ft. with significant acreage for expansion."

Increased sales, profitability

Canopy Growth's patient base increased by approximately 260 per cent and revenue (with $3 million in net income) increased by about 180 percent in the year ending in December 2016 (vs. 2015). This was the first time the company had generated a profit. The results would have been even better but the company had difficulty maintaining adequate stock in some high-demand categories such as mid-to-high THC level products and oils. Financial analysts have predicted that the "shortfall of supply" recently experienced by producers such as Canopy Growth would continue "in the near term" (until about 2020 perhaps) after legalization of marijuana in Canada. That is likely to increase the product's selling price and the profits for producers.

Previously, Canopy Growth had been operating at a loss (–$3.3 million in income in 2015, for example) partly because it was using funds for production expansion and to acquire competitors in preparation for significantly increased cannabis demand by the recreational use market in early 2018. Even after the 2015 results had been published, some analysts remained positive about the company's future value. For example, in early December 2016, Reuter's survey of four market analysts had indicated a consensus rating of Buy. Prior to the release of the 2016 results, the company had a valuation of $1.6 billion. On 2 February 2017, Canopy shares had more than tripled in the previous 12 months, and stood at $10.20 at 11:10 a.m. on the Toronto Stock Exchange (ticker WEED).

The stock price continued to increase, to over $12 in the following days. On 14 February, after the year end report had been was released, Canopy Growth's share price fell seven percent, but even then, it stood at $12.09.

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  55. Freeman, Sunny (14 February 2017). "Canopy Growth Corp almost triples revenue as number of patients soars". Herald. Calgary. Retrieved 14 February 2017. FINANCIAL POST 02.14.2017

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