Canopy Growth (CSE: WEED), the largest licensed producer of regulated cannabis in the world, announced the completion of a previously announced sale of its subsidiary, Mettrum Ltd, to Cannabis Care Canada.
Cannabis Care Canada (CCC) is financially backed by the Laborers International Union of North America (LiUNA), North America’s single largest construction union. CCC paid $7 million to acquire Mettrum’s Bennet Road North operation. The sale did not involve Mettrum’s main Bowmanville facility, also on Bennet Road, which is in full production.
Canopy Growth shares were up 2.5% on the day, closing at $10.59. They are up 24% for the month, and 264% for the year.
In the deal, CCC entered into a three-year Supply Agreement with Canopy Growth for flowers and refined cannabis resin. The sale signals the quickly growing acceptance of medical cannabis in Canada, reaching to its unions, workers, and employees.
“Our business operates better when our members are able to treat their injuries without the heightened risk of addiction, and we believe cannabis is the medicine that can treat many ailments, including the management of pain,” said Joseph Mancinelli, international VP at LiUNA.
LiUNA works to improve the lives and defend the rights of its 110,000 members. This move comes at a time of concern for the current opioid epidemic arising in North America from addiction to prescription pain medicines.
CCC will rename the Mettrum facility to Starseed Medicinal Inc, a wholly owned subsidiary of CCC.
Source: Canopy Growth