Parties
Company
Canopy Growth Corporation
Company
OEG Retail Cannabis (OEGRC)
Company
420 Investments (FOUR20)
Canopy Growth Corporation divested its Canadian retail business, which included the Tweed and Tokyo Smoke brands, as it sharpened its focus on becoming a leading premium brand-focused cannabis and consumer packaged goods (CPG) company. In the OEGRC Transaction, OEG Retail Cannabis (OEGRC) acquired all of Canopy Growth's corporate stores outside Alberta, along with the Tokyo Smoke brand's intellectual property. This encompassed 23 stores across Manitoba, Saskatchewan, and Newfoundland and Labrador. Separately, in the FOUR20 Transaction, 420 Investments Ltd. (FOUR20) bought five of the company's Alberta stores, which were subsequently rebranded under FOUR20. Employees in the sold locations retained their positions post-acquisition. A master license agreement with Alimentation Couche-Tard Inc., relating to the Tweed brand in Ontario, was terminated. Nevertheless, Canopy Growth still operated and owned the Tweed brand, aligning its efforts to offer Canadians innovative cannabis products. The company anticipated that these strategic moves would bring about significant operational savings.
Deal Type
Merger & AcquisitionIndustry
OtherTransaction
Undisclosed/ConfidentialDeal Status
ClosedClosing Date
03 January 2023