Canopy Growth Divests Its CBD Subsidiary To European Pharma Co. For 80M Euros

Canopy Growth Corporation WEED CGC 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. 

In addition, the company is also eliminating its obligation of separating C3 operations from those of its prior owner, Bionorica SE, which will result in avoiding future operational complexities and is reducing short-term capital investment requirements by over CA$50 million ($56.4 million).

What's Next?

Canopy plans on leveraging its high-quality supply of Canadian cannabis products for the medical channel in its core international markets, including Germany, while also serving adult-use consumers in Canada.

"Canopy is maturing as a consumer product company – leveraging our market focus, innovation, and R&D strength to produce cannabis and cannabinoid-based products that make a positive impact on consumers' lives," David Klein, the company's CEO said. "We remain committed to serving the medical cannabis market as a channel and will continue to do so by leveraging our existing high-quality supply of Canadian cannabis products to meet patient demand globally."

More recent news from Canopy:

Canopy Growth Says Goodbye To Its Chief Financial Officer And Chief Product Officer

Canopy Growth Is A 'Show-Me-Story' As It Posts Mixed Progress In KPIs, Analyst Argues

CGC Price Action

Canopy Growth's shares traded 0.98% higher at $9.24 per share during the pre-market session on Wednesday morning.

Photo: Courtesy of Canopy Growth Corporation

Posted In: David KleinDivestituresCannabisM&ANewsEurozoneMarkets

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.