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Canopy Growth Sells Retail Stores

After a review of its strategic objectives including achieving profitability, Canopy Growth Corporation has entered into agreements to sell off its retail division in Canada which includes the stores operating under the Tweed and Tokyo Smoke retail banners.

Canopy Growth will be focusing on streamlining Canadian operations and focusing on being a premium brand-focused cannabis and consumer packaged goods company.

OEGRC Buys Stores Outside Alberta

OEG Retail Cannabis (OEGRC), which is an existing Canopy Growth licensee partner that currently owns and operates the Company’s franchised Tokyo Smoke stores in Ontario, has agreed to acquire all of Canopy Growth’s corporate stores outside of Alberta as well as all Tokyo Smoke-related intellectual property. That consists of 23 Tokyo Smoke and Tweed store locations in Manitoba, Saskatchewan, and Newfoundland and Labrador. The Tokyo Smoke brand will be transferred to OEGRC, and any purchased stores currently branded as Tweed will be rebranded. The Tweed brand will be retained by Canopy Growth as a cannabis product brand.

The master franchise agreement between Canopy Growth and OEGRC to license the Tokyo Smoke brand in Ontario will be terminated on the closing of the OEGRC Transaction.

FOUR20 Purchases Alberta Locations

FOUR20, which is a major chain in Alberta, has agreed to acquire the ownership of five retail locations in Alberta. Those stores will be rebranded under the FOUR20 banner. Scott Morrow, CEO of Four20 says, “We are pleased with our acquisition of the 5 Canopy stores in Alberta. These stores will complement our current network of locations and makes us one of the leading the retailers in Alberta. We look forward to working with the new team members from the 5 locations.”

David Klein, CEO of Canopy Growth, says, “By realizing these agreements with organizations that possess proven cannabis retail expertise, we are providing continuity for consumers and team members. Through the best-in-class retail leadership that OEGRC and FOUR20 have demonstrated, they will continue to serve Canadian consumers with the high-quality in-store experiences that are essential for success in a new industry.”

All in-store team members working in the locations being acquired will see their employment continue with OEGRC and FOUR20 pending completion of these transactions.

Alimentation Couche-Tard Agreement Terminated

The master license agreement between Canopy Growth and Alimentation Couche-Tard Inc. with respect to the use of the Tweed brand for brick-and-mortar retail stores operating in Ontario has also been terminated. Alimentation Couche-Tard owns 35% of the shares of the Fire & Flower brand of cannabis stores.

Tags: Alimentation Couche-Tard Inc (1), Canada Cannabis (138), Cannabis Industry (184), Cannabis Retail (399), Canopy Growth (24), FOUR20 (5), OEG Retail Cannabis (1)