Canopy Growth teaming up with Drake on new cannabis venture More Life Growth Co.
TORONTO -- Canopy Growth Corp. is teaming up with Drake to launch More Life Growth Co., a licensed cannabis producer based in Toronto.
Under the agreement, Drake will hold a 60-per-cent stake in More Life and Smiths Falls-based Canopy Growth will own the remaining 40 per cent.
Canopy Growth will provide all of the day-to-day operations and maintenance of the More Life facility cannabis production facility in Toronto and will retain all of the rights to distribute the product that is grown at the location.
Drake has granted More Life the right to exclusively use certain intellectual property and brands in association with the growth and sale of cannabis and cannabis-related products, accessories, merchandise and paraphernalia in Canada and internationally.
The maintenance of the non-Canada rights after 18 months is contingent upon certain performance targets being met.
Canopy Growth has the right to nominate two directors to the More Life board as well as a pre-emptive right to maintain its ownership interest in the company.
This report by The Canadian Press was first published Nov. 7, 2019.