Canopy Growth Corp (TO:WEED), the largest marijuana company in Canada, announced three key developments last week. These included the signing of an memorandum of understanding to supply cannabis products to the province of New Brunswick for two years; sale of the company’s wholly-owned subsidiary Mettrum to Cannabis Care Canada (CCC); and an exclusive supply agreement with AusCann Group Holdings Ltd. of Australia.
The MOU to supply cannabis products to New Brunswick is estimated to be worth $40 million in its first year, while the sale of Bennett North brings in $7 million in cash for Canopy Growth. The supply agreement allows Canopy Growth to act as AusCann’s exclusive supplier of medical cannabis for the Australian market, beginning with the transfer of a range of medicines for research and commercialization in Australia.
Chairman & CEO of Canopy Growth Bruce Linton said: “Entering into an agreement of this scale with Cannabis Care Canada signals loud and clear that attitudes towards cannabis are transforming across mainstream society as workers and employers increasingly recognize the merits of medical cannabis over other existing alternatives.”
Shares of Canopy Growth have powered more than 50% higher from its early June 2017 lows to its current price of $10.27. Canopy Growth Corporation stock trades at TTM price to sales value of 35.26x and price to book of 2.60x.