Canopy Growth to Sell C³ Cannabinoid Compound Company

This article was originally published on

Canopy Growth (WEED) announced Wednesday that it has signed a deal to sell pharmaceutical subsidiary C³ Cannabinoid Compound Company to Dermapharm Holding SE, a European pharmaceutical company based in Grünwald, Germany.

Driving Focus 

The sale of C³ supports Canopy’s strategic direction to drive demand for consumer cannabis and cannabinoid products. The company will continue to leverage its supply of Canadian cannabis products for the medical circuit in its major international markets, including Germany, while also serving adult consumers in Canada.

Following the divestiture, Canopy Growth is expected to avoid the future operational complexities associated with C³, and significantly reduce short-term capital investment requirements.

Under the agreement, Canopy will receive an upfront payment of C$115.5 million. It will also receive an additional C$61.4 million, subject to certain milestones being met by the company.

The deal, which requires regulatory approvals, is expected to be finalized by January 31, 2022.

CEO Commentary 

Canopy Growth CEO David Klein said, “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. 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.

“I would like to thank the C³ team members for their hard work, dedication, and commitment to building the successful business that C³ is today.”

Wall Street’s Take 

Last month, Barclays analyst Gaurav Jain kept a Hold rating on WEED and set a price target of C$14. This implies 23.5% upside potential.

Overall, the consensus is that WEED is a Hold, based on one Buy, eight Holds and four Sells. The average Canopy Growth price target of C$16.36 implies upside potential of about 44.3% to current levels.

This image has an empty alt attribute; its file name is weewd-1024x352.png

Stay Ahead of Everyone Else

Get The Latest Stock News Alerts