Canopy Growth Corp. Sells Off its German C3 Cannabinoid Compound
Dec 16, 2021 By MarketDepth
Canopy Growth Corporation (TSX: WEED) (NASDAQ: CGC) announced its decision to sell its subsidiary, C3 Cannabinoid Compound Company GmbH, to Dermapharm Holding SE.
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.