Deals also include Brookfield's $1.5-billion acquisition in Brazil, followed by acquisition in U.S.
Cassels Brock & Blackwell LLP provided Canadian legal advice to Ontario’s Canopy Growth Corporation in the company’s $88-million acquisition of a majority stake in a US-based cannabis producer this week. Other cross-border M&A deals include Brookfield’s $1.5-billion acquisition of Brazil-based real estate company BR Properties, followed by the company’s purchase of US network provider CrescoNet.
Ontario’s Canopy Growth to buy majority stake in U.S.-based cannabis producer Jetty for $88 million
Ontario cannabis company Canopy Growth Corporation agreed to acquire approximately 75 percent stake in Jetty, a California-based cannabis extracts producer and vape technology developer, for $88 million.
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Canopy Growth has Cassels Brock & Blackwell LLP as Canadian advisor and Paul Hastings LLP as US legal counsel. Raines Feldman LLP is the legal counsel to Jetty.
"Canopy Growth is building a house of premium cannabis brands with a focus on the core growth categories that will power the market's path forward, now including Jetty – a pioneer of solventless vapes," said Canopy Growth CEO David Klein. "There are significant opportunities for Jetty to scale at the state-level across the US by leveraging Canopy's US ecosystem, and we're actively working on plans to bring the brand to the Canadian recreational market."
"Jetty has put the consumer at the heart of our focus since the outset, and we're proud to have pioneered the cleanest vape technology on the market. This agreement between Canopy Growth and Jetty is mutually beneficial and provides long-term growth opportunities for our employees and our brand,” said Jetty Co-Founder and CEO Ron Gershoni. “Canopy shares our vision and will support us as we bring the highest-quality Jetty products to consumers across North America and the world. We can't wait to be a part of what Canopy is building as we continue to define the future of cannabis and introduce more consumers to what makes Jetty products so special. Along with founding members Nate Ferguson and Rob Ferguson, we look forward to continuing to lead our team at Jetty and working alongside the team at Canopy to further expand our brand."
Oxford Properties, Novaxia co-invest $1.4 billion in France’s life science real estate
Toronto-based real estate investor Oxford Properties Group and French urban investor and developer Novaxia agreed to co-invest $1.4 billion in life science properties across France, in a span of five years.
Novaxia will act as development manager and co-asset manager alongside Oxford.
The first phase of the investment will focus on the development of lab and research centres for biotech and medtech companies in Paris, a city which accounts for 80 percent of all biotech venture capital funding in France, before exploring other emerging markets in the country such as Lyon and Strasbourg.
"Novaxia is opening up to partnerships and breaking new ground by adding another string to its urban recycling bow,” said Joachim Azan, President and founder of Novaxia. “Following housing, Novaxia will recycle obsolete buildings into places of innovation in the life sciences. Following on from the project to install one of the largest incubators in Europe at the Hotel-Dieu Paris, Novaxia is developing the means to deploy suitable sites for the entire life sciences value chain throughout France (research laboratories, incubators, accelerators and production plants). Real estate will thus be the starting point for scientific innovation so that France retains its best researchers, its best companies and strengthens its scientific sovereignty.”
Pierre Leocadio, Head of Investment, Europe at Oxford Properties, said, “Building a global life sciences business of scale remains one of Oxford’s highest priority investment strategies and France is one of our strongest conviction markets in Europe for growth. Having undertaken significant investment into strategic life science markets in North America and UK in recent years, our sights are firmly set on replicating those successes in France.”
Brookfield buys Brazil’s BR Properties for $1.5 billion; purchases US network provider CrescoNet
On May 18, Brazil-based real estate company BR Properties agreed to sell a series of real estate properties to Brookfield Asset Management for $1.5 billion.
Mattos Filho and PMK Advogados acted as legal advisors to Brookfield with BTG Pactual as financial advisor.
BMA Advogados served as lawyer to BR Properties.
The next day, May 19, CrescoNet, a California-based LTE/5G multi-application networks provider, announced that Brookfield had acquired a stake in the US company.
The transaction will fund CrescoNet’s continuing product and market expansion into North American water, gas, and electric utilities.
John Stafford, President for CrescoNet North America, said, “We value the Brookfield partnership and view it as clear confirmation of our strategy, execution, and market opportunity. We believe the pace and precision of our innovation, acquisitions, partnerships, expert delivery, and customer care are already making an important difference for our customers. This partnership will further accelerate our product and services expansion focused on delivering high quality services to North American utility clients.”