Canopy Growth expands into Denmark
Danish parliament recently passed legislation that paves the way for legal medicinal cannabis sales to begin January 1, 2018. To date, patient access to cannabis in Denmark has been limited to the sale of costly handmade compounds available from a single pharmacy. Canopy Growth is confident that the production and formulation model it has built in Canada will lead to clear consumer preference for Spectrum's oil and dried cannabis products.
Spectrum is named for the industry first strain classification system which simplifies the dialogue around strength and dosage by categorizing medical cannabis according to THC and CBD levels using a straightforward colour-coded guide. Spectrum Denmark follows the launch of Spektrum Cannabis GmbH in Germany and Spectrum Chile SpA, where, like Denmark, physician education and customer education on medical cannabis are in their infancy.
"International market opportunities are emerging quickly and Canopy has the experience and expertise to turn these opportunities into greater shareholder value," said Bruce Linton, Chairman & CEO, Canopy Growth. "Our approach is clear: establishing the brands, infrastructure and people in a systematic manner to ensure success across numerous federally-legal geographies. With Spectrum in particular, our goal is to redefine what a global medical cannabis producer looks like in the minds of doctors, regulators, and patients."
"Leveraging the knowledge of the world's most experienced and largest cannabis company, we will soon be able to serve the Danish market with safe, high quality medical cannabis products," said Lars Thomassen, Danish Cannabis. "This will enable us to run clinical trials on a broad variety of indications and engage in medical outreach efforts as Canopy has done so effectively in Canada. We will also begin, in earnest, to establish the production infrastructure necessary to serve Denmark as legally permitted."
The strength of the existing Danish team, made up of experienced entrepreneurs with substantial hemp production, consumer packaged goods, and brand positioning experience, will allow Spectrum to drive the national conversation around cannabis legalization, while integrating with other Canopy Growth companies around the world to meet global cannabis demand.
A principal in Danish Cannabis, Moellerup Estate, has for years been one of the largest hemp producers in Europe. Moellerup Brands include a wide range of hemp food products from gin, beer, granola, oil, to flour, cosmetics and hemp for CBD oil production.
As part of the arrangement, Canopy Growth will provide an initial capital commitment of $10 million to be released in tranches. In addition, the company will also issue up to 1,906,214 common shares in the corporation subject to meeting defined milestones.
This transaction has been conditionally approved by the TSX.
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