On October 11, 2017, Canopy Growth Corporation entered into a definitive joint venture agreement to form a new company, BC Tweed Joint Venture Inc. together with a large-scale greenhouse operator (“the Partner”) to develop 1.3 million sq. ft. of greenhouse growing capacity in British Columbia with an exclusive option to develop a further 1.7 million sq. ft. of existing greenhouse infrastructure at a second BC location.
To fund the development of the joint venture, Canopy Growth will contribute, in multiple tranches, an aggregate of $20 million in cash (of which approximately $1 million was advanced at closing), in exchange for Class A Preferred Shares with cumulative preferred dividends.
Cassels acted for Canopy Growth Corporation with a deal team composed of John Vettese, Cathy Mercer, Jonathan Sherman and Amanda Metallo (Business, Securities, Cannabis and M&A) and Rob Lysy (Real Estate and Cannabis).