Canopy Growth Divests Its CBD Subsidiary To European Pharma Co. For 80M Euros
The deal is expected to close by January 31, 2022.
Canopy Growth Corporation announced Wednesday that it is divesting its subsidiary business, C³ Cannabinoid Compound Company GmbH, to Dermapharm Holding SE, a European pharmaceutical company headquartered in Grünwald, Germany.
Deal Details
The transaction includes an upfront payment of EUR 80 million ($90.24 million), which will be made upon closing of the transaction in addition to an earnout payment of up to EUR 42.6 million, subject to the achievement of select milestones by the C³ business.
As part of the agreement, all C³ employees will be retained by Dermapharm following the transaction’s closing.
The deal is expected to close by January 31, 2022.
What Does This Means For Canopy?
The Canadian cannabis giant said that with the divesture of C³, it is continuing its evolution into a CPG-modelled organization and furthering its strategy of driving focus and consistent business across its core markets.
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