Canopy Growth Corp. Sells Off its German C3 Cannabinoid Compound

Dec 16, 2021 By MarketDepth

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Canopy Growth

Canopy Growth Corporation (TSX: WEED) (NASDAQ: CGC) announced its decision to sell its subsidiary, C3 Cannabinoid Compound Company GmbH, to Dermapharm Holding SE.

Down 5%

Shares of Canopy Growth Corporation (TSX: WEED) initially plunged 5% by midday on Wednesday, December 15th before ending the day 1.45% higher than the open. 

Leveraging Canadian Assets

Canopy Growth views its divestiture of C3 as part of its evolution into a CPG-modelled organization. The Company seeks to leverage its high-quality supply of Canadian cannabis products for the medical channel in its core international markets and expects to avoid future operational complexities associated with C³ as well as significantly reduce short-term capital investment requirements.

“Canopy is maturing as a consumer product company –  leveraging our market focus, innovation, and R&D strength to produce cannabis and cannabinoid-based products that make a positive impact on consumers lives.”

David Klein, CEO, Canopy Growth

Canopy will receive an upfront payment of approximately  $115.5 million, as well as an additional $61.4 million, depending on the achievement of certain milestones by the business.