Canopy Completes Purchase of ebbu IP

Canopy Growth (NYSE:CGC,TSX:WEED) completed its previous acquisition of the intellectual assets from hemp research company ebbu.

As quoted in the press release:

Intellectual Property (“IP”) and R&D advancements achieved by ebbu’s team apply directly to Canopy Growth’s hemp and THC-rich cannabis genetic breeding program and its cannabis-infused beverage capabilities. In addition, ebbu’s IP portfolio will contribute to the clinical formulations program executed by Canopy Health Innovations, a wholly owned subsidiary of the Company.

Canopy Growth operates a rapidly emerging, field-scale hemp operation based in Saskatchewan and by applying ebbu’s IP, the Company has the potential to vastly reduce the cost of CBD production, a sought-after cannabinoid in both the wellness and medical spaces.

Canopy Growth has paid CDN $25 million in cash and issued 6,221,210 common shares (“shares”) for the assets being acquired. Up to a further CDN $100 million shall be payable under the purchase agreement if certain scientific related milestones are achieved within two years. Canopy Growth will have the option of satisfying such milestone payments in cash, shares or a combination of cash and shares. If such payments are satisfied in shares, the number of shares shall be calculated based on the volume weighted average price of the shares on the TSX for the 20 trading days immediately prior to the date of achievement of the applicable milestone.

Click here to read the full press release.

Source: marijuanaindex.com