SMITHS FALLS, ON, Nov. 1, 2016 /CNW/ - Canopy Growth Corporation (TSX: CGC) ("Canopy Growth" or the "Company"), Canada's largest and most recognized producer of cannabis, has entered into a Memorandum of Understanding (the "MoU") with the Goldman Group to expand Canopy Growth's cannabis production capacity and geographic footprint.
The MoU is the culmination of a shared view that high quality cannabis grown through secure production channels will continue to be the preferred model for Canadian cannabis production, and that current capacity is insufficient to meet the growing demand for medical and future recreational cannabis.
The agreed upon growth strategy will see the Goldman Group acquire new properties across Canada for the design and/or build of new Canopy Growth production facilities. Subject to the Company's approval, these facilities will be constructed to Canopy Growth's proprietary specifications as they are defined by established production methods for each of its subsidiaries and leased back to the Company. Through this approach, the Goldman Group will continue to expand the substantial real estate portfolio it has built in its 50-year global operating history, while benefiting from a reliable, multi-site, long-term tenant operating in a rapidly expanding industry.
"Having already built the largest production footprint in the country, we're seeking to accelerate on our national and international expansion strategy, one that is unmatched in the sector," said Bruce Linton, Chairman and CEO of Canopy Growth. "Canopy and its shareholders get an accelerated expansion avenue with offset upfront capital costs and Goldman expands its already impressive portfolio of holdings."
Cannabis market projections developed by leading Canadian financial institutions and today's report by the office of Canada's Parliamentary Budget Officer consistently project a multi-billion dollar industry in the coming years. With this new expansion strategy, Canopy Growth builds on its already leading position as a vertically integrated producer capable of earning a large market share through unparalleled production scale.
Murray Goldman, Founder of the Goldman Group and Board Member of Canopy Growth commented, "The management team at Canopy Growth has demonstrated its ability to scale quickly and meet the rapidly increasing demand in the medical cannabis market. With a recreational market on the horizon, this MoU sets the stage for a large and expedited expansion plan."
The Goldman Group through its affiliates owns approximately 3.8% of the outstanding shares of Canopy Growth and is already the landlord of the Company's Bedrocan Canada Inc. properties.
Here's to Future Growth.
About Canopy Growth Corporation
Canopy Growth is publicly traded on the TSX and a leading diversified producer of medical cannabis through its wholly owned subsidiaries Tweed, Bedrocan Canada, and Tweed Farms. The Company operates a collection of diverse brands and curated strain variety, supported by over half a million square feet of indoor and greenhouse production capacity.
About The Goldman Group
Founded in 1958, the Goldman Group is one of Canada's top diversified real estate and property development companies with over 200 large-scale residential, commercial and industrial projects to its credit. Its founding principles of improving communities through development have driven its growth and touched communities around the world. Recent achievements include multiple high-rise condominium development projects in the Greater Toronto Area.
This news release contains forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "estimates", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Canopy Growth Corporation, Tweed Inc., Tweed Farms Inc. or Bedrocan Canada Inc. to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. The forward-looking statements included in this news release are made as of the date of this news release and Canopy Growth does not undertake an obligation to publicly update such forward-looking statements to reflect new information, subsequent events or otherwise unless required by applicable securities legislation. Neither the Toronto Stock Exchange nor its Regulation Services Provider (as that term is defined in policies of the Toronto Stock Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Canopy Growth Corporation
For further information: Jordan Sinclair, Director of Communications, [email protected], 855-558- 9333 ex 309; Tyler Burns, Investor Relations, [email protected], 855- 558-9333 ex 122; Director: Bruce Linton, Chairman and CEO, [email protected]