Drake is getting into the cannabis business.
Together with cannabis producer Canopy Growth Corp, the musician and entertainer is launching the More Life Growth Company, a licensed cannabis producer based in Drake’s hometown Toronto.
“The opportunity to partner with a world-class company like Canopy Growth on a global scale is really exciting,” said Drake in a statement.”The idea of being able to build something special in an industry that is ever growing has been inspiring. More Life and More Blessing.”
More Life Growth will assume ownership of a production facility in Scarborough, Ontario that is licensed by Health Canada for the cultivation, processing and sale of cannabis. Canopy Growth will continue to operate the facility and retain the rights to distribute its product, the company said.
Following issuance of shares, Drake will own 60 per cent of More Life Growth, with Canopy Growth retaining 40 per cent.
Canopy has exclusive rights to distribute More Life products in Canada, and Drake has granted More Life the exclusive rights to certain intellectual property and brands in Canada and internationally.
Canopy has the right to nominate two directors to More Life’s board and a pre-emptive right to maintain its ownership in the company.
U.S.-listed shares of Canopy, which last year drew a major investment from Corona-brewer Constellation Brands, rose around 3 per cent in early trading.
The partnership comes at a tough time for cannabis stocks, with Canopy’s shares down 62 per cent since their recent high on April 29. The company reported a net loss of $1.3 billion in the quarter ended June 30.
“Drake’s perspective as a culture leader and entrepreneur combined with Canopy Growth’s breadth of cannabis knowledge will allow our new company to bring an unmatched cannabis experience to global markets,” said Canopy Growth CEO Mark Zekulin in a press release.
Original Article was first seen on Financial Post