Canopy Growth Launches Cannabis Beverage With Caffeine And Is Fined For Breach Of Service

Canopy Growth Corporation CGC WEED announced the launch of its cannabis-infused beverage with naturally occurring caffeine under the Deep Space brand. Canopy is also launching four new flavors under the Tweed brand.

Deep Space Propulsion

Deep Space is adding two new cannabis beverages to its lineup, each with 10 mg THC, 30 mg of naturally occurring caffeine and 10 mg of CBG. The flavors are Deep Space Propulsion Pulsar Peach, and Deep Space Propulsion Cosmic Cherry Lime.

TWEED

Tweed continues to expand its beverage offerings with the introduction of Tweed Iced Tea Peach with 5mg THC. The non-carbonated, naturally flavored, sweet peach iced cannabis tea complements the lemon and raspberry iced tea flavors currently available to consumers through Tweed.

Tweed's new cannabis-infused Sparkling Lemonade, available in strawberry, is a carbonated drink made with naturally flavored fruit juice and contains 7.5 mg of THC.

Tweed also added Tweed Fizz Pineapple cannabis-infused sparkling water to the brand's growing portfolio. This pineapple flavor beverage contains 5 mg THC and is naturally flavored. The new flavor joins Tweed's current roster of Fizz flavors including cherry, mango, and watermelon.

Breach of Service Contract

Canopy Growth reported in its 8-K filing that it had received a decision from an arbitration tribunal in connection with a dispute arising from services rendered pursuant to a services agreement involving the company and its subsequent termination of the services agreement. The tribunal held that Canopy did not have the right to terminate the services agreement.

As a result, the tribunal awarded the counterparty:

• default damages in the amount of approximately CA$15 million, inclusive of taxes.

• pre-award and post-award interest at the annual rate of 5.5%, compounded monthly, from December 9, 2021 to the date of payment of CA$15 million.

• the costs of the counterparties to the arbitration in an amount to be fixed by the tribunal.

Canopy stated that it continues to consider all options that may be available to it with respect to the tribunal's decision.

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Photo: Courtesy of CNW Group/Canopy Growth Corporation