Canopy Growth Sells Stake In AusCann For $6.3M

Canopy Growth Corporation WEED CGC said Tuesday it has sold 42 million AusCann Group shares.

The company sold AusCann’s shares through an of market block trade at 15 cents per share for gross proceeds of $6.3 million. The sale accounts for Canopy Growth’s total 13.2% interest in AusCann.

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"Canopy Growth remains optimistic about the future of the Australian medical cannabis market and will continue to collaborate with the team at Auscann to support greater physician understanding and patient access to high quality cannabis products throughout Australia," Canopy Growth CEO Mark Zekulin said in a statement.

"The decision to divest our position in AusCann, which we obtained three years ago in exchange for support provided, will allow us to sharpen our focus on our wholly-owned operations in the market, while continuing to collaborate with our partners at AusCann."

Canopy Growth's Global Senior Director of Clinical Science, Dr. Marcel Bonn-Miller will remain his position on the AusCann board of directors to help any future partnership.

Canopy Growth’s shares traded higher by 7.5% at $20.28 at time of publication.