Plus   Neg

Canopy Growth To Launch Cannabis Wellness Company With Rapper Drake

Cannabis company Canopy Growth Corp. said Thursday that it will launch a new cannabis wellness company with Canadian rapper Drake in his hometown of Toronto. The new company, named More Life Growth Co., will be a fully licensed producer of cannabis.

The More Life Growth Co was previously a wholly-owned subsidiary of Canopy Growth. In connection with the launch of the More Life brand, the More Life Growth Co. has issued shares to certain entities controlled by Aubrey Drake Graham, or Drake.

Drake will own 60 percent ownership interest in More Life Growth Co., while Canopy Growth will retain the remaining 40 percent ownership.

The More Life Growth Co. already holds a license issued by Health Canada for the cultivation, processing and sale of cannabis at its production facility in Scarborough, Ontario.

Canopy Growth said it will continue to provide all of the day-to-day operations and maintenance of the More Life facility, and will retain all of the rights to distribute the product cultivated at that facility.

Drake has granted the More Life Growth Co. exclusive rights to certain intellectual property and brands in association with the production and sale of cannabis as well as cannabis-related products, accessories, merchandise and paraphernalia in Canada and internationally.

The maintenance of the non-Canada rights after eighteen months will be contingent upon certain performance criteria of the More Life Growth Co. being met.

The More Life Growth Co. has sublicensed the rights in Canada to Canopy Growth, in exchange for payments to be made by Canopy Growth on the sale of More Life products. Canopy Growth will have the exclusive rights to distribute More Life products in Canada.

Canopy Growth and Drake have entered into a shareholders agreement, investor rights agreements, and other ancillary agreements to govern the operations of the More Life Growth Co.

As part of these arrangements, Canopy Growth has the right to nominate two directors to the board of the More Life Growth Co. It also has a pre-emptive right to maintain its ownership interest in the More Life Growth Co.

Canopy Growth already has partnerships with some other celebrities, including actor Seth Rogen, and television show host as well as entrepreneur Martha Stewart. Rapper Snoop Dogg entered into a partnership with Canopy Growth's subsidiary 'Tweed' in 2016.

For comments and feedback contact: editorial@rttnews.com

Business News

Follow RTT