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SMITHS FALLS, ON, Dec. 2, 2016 /CNW/ - Canopy Growth Corporation (TSX: CGC) ("Canopy Growth" or the "Company") is pleased to announce the formation of the cannabis research incubator, Canopy Health Innovations Inc. ("CHI").
The planning and implementation of the business strategy for CHI began in the summer of 2016, and CHI was formally incorporated as a private company in August 2016. CHI will focus on developing and researching clinically ready whole plant cannabis drug formulations and dose delivery systems, with the ultimate goal of validating diversified treatment options for Canadians and for patients and consumers in other jurisdictions where treatment with cannabis is federally lawful. CHI plans to undertake a combination of exploratory studies and early stage clinical testing to identify, develop and validate products aimed at disrupting the market for a variety of existing pharmaceutical product categories, and then commercializing those products through licensing or other arrangements.
The operations of CHI will be initially funded by a range of North American investors that share a common vision. To that end, CHI has arranged with Dundee Securities Ltd. a private placement of common shares of CHI at a price per share of $1.50, to raise total gross proceeds of $7 million. The closing date of this offering is scheduled to be on or about December 8, 2016 and is subject to certain conditions.
"There is a unique opportunity to develop an unmatched intellectual property portfolio in the medical cannabis industry," said Bruce Linton, Chairman and CEO of Canopy Growth. "We believe that Canada is emerging as a potential global leader in cannabis research, and that the Canadian policy framework will enable CHI to access research products approved for human use. CHI's goal will be to drive the medical transformation of whole plant cannabis options from dried flowers to forms and dose forms more consistent with traditional medical practice."
Canopy Health Innovations will operate as an independent and private collaborator of Canopy Growth and its subsidiaries. CHI will be owned by Canopy Growth and qualified private investors. CHI's business model is to engage simultaneously in a number areas of research, with a strict focus on the creation and enhancement of its own intellectual property. In doing so, it plans to work from genetics and other products sourced from the Company. Canopy Growth and its subsidiaries will then retain an exclusive, first priority right to license and commercialize intellectual property developed and owned by CHI.
This press release does not constitute an offer to sell or the solicitation of any offer to purchase any securities in the United States. The securities referenced herein may not be offered or sold in the United States absent registration or an exemption from registration.
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.
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: Contacts: 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]