SMITHS FALLS, Ont. – Canopy Growth Corp. has signed a deal valued at $297 million that will see it give up its ownership in Canopy Rivers Inc., which it established as a venture capital firm to invest in the cannabis sector.<\/p>\n<\/p>\n
Under the agreement, Canopy Growth will receive exchangeable shares, warrants and debt in TerrAscend Corp., increasing its direct conditional ownership to 21 per cent from 13 per cent.<\/p>\n<\/p>\n
Canopy Growth will also increase ownership in Quebec greenhouse joint venture Vert Mirabel to 67 per cent from 41 per cent.<\/p>\n<\/p>\n
In exchange, Canopy Growth will pay Canopy Rivers, which plans to change its name, $115 million in cash and 3.75 million Canopy Growth shares.<\/p>\n<\/p>\n
It will also give back its nearly 36.5 million class-B multiple voting shares and 15.2 million class-A subordinate voting shares in Canopy Rivers.<\/p>\n<\/p>\n
The deal is subject to approval by a two-thirds majority vote by holders of Canopy Rivers multiple voting and subordinate voting shares, voting separately on a class basis, as well as a simple majority of disinterested holders of subordinate voting shares.<\/p>\n<\/p>\n
This report by The Canadian Press was first published Dec. 21, 2020.<\/p>\n<\/p>\n
Companies in this story: (TSX:WEED, TSX:RIV)<\/p>\n<\/p>\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
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