Before it became “medical or adult-use cannabis” it was weed, an illegal plant grown in basements and sold in back alleys. Now, it’s a publicly traded commodity that’s expanding on a global scale.
One of the players that’s been growing almost faster than the industry is Canopy Growth Corporation, and yesterday, they received permission for a significant growth spurt.
Insider Financial reported that Canopy, who already owns various subsidiaries, just received court approval to acquire the other LP giant, Mettrum Health Corporation. With this acquisition, Canopy is arguably the largest producer of marijuana on the planet.
“The biggest licensed producers in Canada are all in a big lead when you look at it globally,” said Jordan Sinclair, Director of Communications for Canopy, in an interview with Marijuana.com. Sinclair added that there are many ways to measure the size and scope of a corporation, but there is little doubt that they are one of the largest.
This acquisition for Canopy will require them to tweak how Mettrum previously did business, and adjust them in order to conform with the needs of the new parent company. That practice is done every time Canopy acquires a new entity, as it’s certainly not their first time at the takeover table.
“When we acquired Tweed Farms, which was operating as Park Lane at the time, they didn’t yet have their license. So we went in and applied a bunch of know-how that we learned by getting our own license. For the Bedrocan Canada acquisition, it was a very unique arrangement in that Bedrocan has its own standardized operating procedures, so we didn’t change anything. For Mettrum, we will get in there and have a really good look at they way they are doing things. They grew a large customer base for a reason.”
Regardless of the impressive list of Mettrum customers, they were the subject of a significant recall in recent months due to a pesticide that was not disclosed by a third-party manufacturer. Canopy is adamant about that not happening under their watch. “[We] have to make sure specifically that anything that might have lead to the recent product recall Mettrum had, is really tightened up to ensure that doesn’t happen again.” Sinclair added that as bad as a recall is, it shows that “the system is working.”
Tweed Farms is set to be a provider of adult-use cannabis once legislation is put in place across Canada while Bedrocan will remain exclusive to the medical marijuana sector. Mettrum is in less of a hurry to define itself. “Some of [the positioning]will be dictated by the laws and regulations, to understand what production will look like. But Mettrum rests really nicely as a natural health product line that has some lifestyle elements to it. It’s less about defining it as black or white in medical or recreational, and more about just finding things on the spectrum and putting that brand across so you can be diversified.”
The acquisition didn’t just bring more cannabis to Canopy Growth, they have also acquired the sister product line called Mettrum Originals, which are food and topical products made from hemp.
The acquisition of Mettrum is the latest in what will eventually be a global marketplace for a plant that was, for too long, unjustly vilified and forced to grow in the dark corners of society.
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