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Marijuana Industry News November 8, 2019 MJ Shareholders
TORONTO and LOS ANGELES, Nov. 7, 2019 /CNW/ – PRESS RELEASE – Canopy Growth Corporation and Aubrey Drake Graham have announced that they have entered into agreements to launch the More Life Growth Company, a fully licensed producer of cannabis based in Drake’s hometown of Toronto, Canada.
“When we first began talks with Drake we were extremely inspired by and aligned with his vision to bring best-in-class cannabis products to the world,” said Mark Zekulin, CEO of Canopy Growth Corporation. “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.”
Drake’s eclectic career includes experience across a wide variety of industries including music, television, film, fashion, sports, brand development, content curation and social and digital media strategy. Having launched numerous successful brands over the past decade, he is uniquely positioned to bring his innovative eye to the recreational cannabis industry.
“The opportunity to partner with a world-class company like Canopy Growth on a global scale is really exciting,” shared Drake. “The idea of being able to build something special in an industry that is ever growing has been inspiring. More Life and More Blessing.”
Based in Drake’s hometown of Toronto, More Life is centered around wellness, discovery and overall personal growth with the hope of facilitating connections and shared experiences across the globe.
“All in all, we couldn’t be more excited to partner with Drake to bring his vision for the More Life Growth Company to global cannabis markets,” concluded Zekulin. “We anticipate a long, successful and mutually beneficial working relationship.”
The company and Drake will share further details on the More Life team and vision in the weeks to come.
In connection with the launch of the More Life brand, a previously wholly-owned subsidiary of Canopy Growth has issued shares to certain entities that are controlled by Drake. Following the issuance of the shares, Drake holds a 60-percent ownership interest in the More Life Growth Company, with Canopy Growth retaining a 40-percent ownership.
The More Life Growth Company is the beneficial owner of an entity licensed by Health Canada for the cultivation, processing and sale of cannabis at its production facility in Scarborough, Ontario. Canopy Growth will continue to provide all of the day-to-day operations and maintenance of the More Life Facility and will retain all of the rights to distribute the product that is cultivated at the More Life Facility.
As consideration for the issuance of the shares of the More Life Growth Company, Drake has granted More Life Growth Company the right to exclusively exploit certain intellectual property and brands in association with the growth, manufacture, production, marketing and sale of cannabis and cannabis-related products, accessories, merchandise and paraphernalia in Canada and internationally. The maintenance of the non-Canada rights after 18 months is contingent upon certain performance criteria of the More Life Growth Company being met. The More Life Growth Company has sublicensed such rights in Canada to Canopy Growth in exchange for payments to be made by the Company on the sale of More Life products, providing Canopy Growth with the exclusive rights to distribute More LifeTM products in Canada. In addition, Canopy Growth has the option to extend the terms and conditions of the sublicense into all international jurisdictions.
Canopy Growth and Drake have entered into a shareholders agreement, investor rights agreements, and various other ancillary agreements to govern the operations of the More Life Growth Company. In connection with these arrangements, Canopy Growth has the right to nominate two directors to the board of the More Life Growth Company as well as a pre-emptive right to maintain its ownership interest in the More Life Growth Company.
Cassels Brock & Blackwell LLP acted as legal counsel to Canopy Growth and Reed Smith LLP acted as legal counsel to Drake in connection with the transaction.
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