Canopy Growth Corp CGC, a Canada-based cannabis and hemp company, on Thursday announced it entered into an agreement to acquire Storz & Bickel.
What Happened
Canopy Growth will pay up to 145 million euros for Storz & Bickel, a Germany-based vaporizer designer and manufacturer. The acquisition will give Canopy Growth control of an intellectual property portfolio of 17 patents that will improve its existing vaporizer design operations. As part of the agreement, Storz & Bickel's founders Markus Storz and Jurgen Bickel will join Canopy's organization and help create and sell new products.
Storz & Bickel exports devices to 50 different global markets and has a portfolio of medically approved vaporizers, including the Volcano Medic and the Mighty Medic.
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Why It's Important
Canopy Growth co-CEO and Chairman Bruce Linton said in the press release the acquisition should transform the company into becoming a leader in the high-margin vaporizing category. The executive also said Storz & Bickel is among the "most recognized" companies in the industry.
"Leveraging their IP into the tech-heavy vaporizer designs we have in progress will allow us to bring products to market that will set a new bar in terms of quality, functionality, and consumer safety," added Canopy Growth Chief Technology Officer Peter Popplewell.
What's Next
Canopy Growth said its "substantial" cash position is among its most important strategic advantages and looking forward the company will continue building on its platform with new strategic acquisitions to improve its portfolio and gain access to new markets.
Shares of Canopy Growth were down 8.4 percent to $28.81 in Thursday's pre-market session.
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