RTTNews | Dec 15, 2021 08:29AM EST

08:29 Wednesday, December 15, 2021 (RTTNews.com) - Canopy Growth Corporation (WEED.TO, CGC) has entered into an agreement to divest its subsidiary business, C Cannabinoid Compound Company GmbH, to Dermapharm Holding SE. An upfront payment of 80 million euros will be made upon the closing of the transaction in addition to an earnout payment of up to 42.6 million euros. The deal is anticipated to close by January 31, 2022.

Canopy Growth said, with the divesture, it is eliminating its obligation of separating C3 operations from those of its prior owner, Bionorica SE. The company is reducing short-term capital investment requirements by over C$50 million.

The C business develops and manufactures pharmaceutical products. It is comprised of Spectrum Therapeutics GmbH, THC Pharm GmbH The Health Concept, and Spectrum Therapeutics Austria GmbH. The Bionorica SE-founded C3 Cannabinoid Compound Company was acquired by Canopy Growth in May, 2019 in an all cash deal valued at 225.9 million euros.

Read the original article on RTTNews ( https://www.rttnews.com/3249510/canopy-growth-to-divest-c-cannabinoid-compound-company-quick-facts.aspx)

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