Canopy Growth to Acquire 20% Stake in Indiva For $2.2M Under Latest Deal

Author: Benzinga Newsdesk | May 30, 2023 07:47am

Canopy Growth Corporation ("Canopy Growth" or the "Company") (TSX:WEED) (NASDAQ:CGC), a leading global cannabis company, and Indiva Limited ("Indiva") (TSXV:NDVA), the leading Canadian producer of cannabis edibles and other cannabis products, and its subsidiary, Indiva Inc., announced today that they have entered into a license assignment and assumption agreement (the "Assignment Agreement") providing Canopy Growth exclusive rights and interests to manufacture, distribute, and sell Wana™ branded products in Canada which accelerates Canopy Growth's ability to leverage the Wana brand.

As consideration for Indiva entering into the Assignment Agreement and other related agreements in respect of the transactions described herein, Indiva will complete a non-brokered private placement offering of common shares ("Common Shares") of Indiva whereby Canopy Growth will subscribe for 37,230,000 Common Shares for an aggregate purchase price of $2,155,617 (the "Private Placement") at a price per Common Share of $0.0579 (the "Issue Price"). The Issue Price was determined based on the 10-day volume weighted average trading price of the Common Shares on the TSX Venture Exchange (the "TSXV") during the 10 consecutive trading days ending on the last trading day immediately prior to the date hereof. Upon closing of the Private Placement, Canopy will exercise control and direction over 19.99% of the issued and outstanding Common Shares. The balance of the consideration will be paid by Canopy to Indiva as follows: (i) additional consideration representing a value of $844,383; (ii) a cash payment of $1,250,000 on May 30, 2024.

Posted In: CGC TSX:WEED TSXV:NDVA