Canopy Growth Corporation (TWMJF) and Canopy Rivers Corporation announced today that they have executed a strategic agreement with LiveWell Foods Canada Inc., a vertically integrated cannabis company. Under the agreement, Canopy Growth and Canopy Rivers will assist in the development and commercialization of LiveWell’s two cannabis cultivation facilities, located in Ottawa, Ontario, and Litchfield, Quebec.
“This new partnership represents further validation that Canopy is the platform of choice in the cannabis sector,” commented Canopy Growth CEO and Chairman, Bruce Linton. “Canopy has an unmatched ability to collaborate with partners given our breadth of operational knowledge, technology, investment capital, and cultivation expertise.”
To assist in LiveWell’s development, Canopy will provide the company with high-quality cannabis strains for cultivation, assistance with compliance, guidance, and support from trained personnel, and financial and strategic support to assist LiveWell to obtain licenses for its cultivation facilities.
Once licensed, LiveWell’s facilities will have a combined production and processing space of approximately 1.5 million square feet. Additionally, LiveWell will launch its brand through Canopy Growth’s distribution network, including Tweedmainstreet.com, as well as through its retail cannabis dispensary channels.
Subject to the completion of certain milestones, both Canopy Growth and Canopy Rivers will be issued equity in LiveWell. LiveWell has agreed to receive an initial purchase agreement from Canopy for cannabis production at its Ottawa facility. The company also has the option to receive up to $20 million in debt financing from Canopy Rivers for continued growth.
“Partnering with Canopy Growth and Canopy Rivers, the leaders in the cannabis industry, provides LiveWell with the best in class partners required to execute on our ambitious growth plans in an efficient and expedited manner,” said LiveWell CEO Seann Poli. “Having access to their operational excellence, unique technology, global distribution infrastructure, and an abundance of other industry insights, we can significantly de-risk the execution and operation of both facilities. These significant executional efficiencies will drastically reduce our time to market and improve the quality of the product we deliver.”
There are four analysts covering this stock according to Yahoo! Finance with an average price target of the stock on the Toronto Exchange of C$35.40. That stock is trading at C$28.07, down from its 52-week high of C$44.00. The OTC Marketplace stock lastly traded at $21.97 down from its 52-week high of $35.88.