Canopy Growth Drops Drake as Cannabis Joint Venture Falls Apart
(Bloomberg) -- More than a year after announcing a partnership with musician Drake, Canadian cannabis producer Canopy Growth Corp. has ended the relationship.
Canopy terminated a joint venture with Drake’s More Life Growth Co. to sell cannabis in the Canadian and global markets in March, BNN Bloomberg reported, citing the company’s regulatory filings.
“We have indeed divested from More Life and the facility in Scarborough which had been intended to be part of that agreement is now Canopy Growth’s R&D facility, where we will work on plant science and science development projects,” Jennifer White, director of communications at Canopy Growth, said in an emailed statement to BNN Bloomberg.
A representative from Drake’s management team wasn’t immediately available for comment.
Canopy and Drake announced the deal in November 2019 involving Toronto-based More Life, 60% owned by the superstar artist and 40% owned by Canopy. Previously a wholly-owned subsidiary of Canopy, it was already licensed to cultivate, process and sell cannabis.
In the filing, the company said it took a C$10.3 million ($8.6 million) impairment charge on the venture in the fiscal fourth quarter ended March 31. Canopy said it also “derecognized the remaining minimum royalty obligations owing to More Life” of about C$33.7 million.
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