Canopy Growth to divest Germany-based company

Canopy Growth to divest Germany-based company

The cannabis company has reached an agreement to sell C3 to Dermapharm

It appears that Canopy Growth has decided to make necessary decisions in its operations after announcing the signing of a contract to divest its subsidiary business, Cannabinoid Compound Company GmbH (C3), to Dermapharm Holding SE, a European pharmaceutical company based in Grünwald, Germany. The C3 business was known for manufacturing and developing a wide variety of pharmaceutical products and is comprised of THC Pharm GmbH The Health Concept, Spectrum Therapeutics GmbH, both based in Germany, and Spectrum Therapeutics Austria GmbH, based in Vienna, Austria.

Through such a decision, Canopy continues to move forward on the path to a CPG-modeled organization, as well as to steadily advance its strategy to maximize business and focus on its core markets. The company says it will continue to leverage its vast, world-class supply of Canadian-developed cannabis products for medical cannabis in its core markets internationally, including Germany. Its focus on serving recreational consumers in Canada will not be neglected either, as it remains a very profitable market in the North American country.

As a result of the divestiture, the company’s management expects Canopy to avoid the various impending operational complexities with C3 at all costs, which at the same time greatly reduces near-term capital investment requirements.

“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,” said David Klein, CEO, Canopy Growth. “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.”