Canopy Growth Corporation has closed transactions with OEG Retail Cannabis and 420 Investments Ltd. to divest its retail business across Canada.
"The divestiture of our Canadian retail business marks an important step forward on our path to profitability and furthers Canopy Growth's focus on generating revenue growth in the Canadian market," said Canopy Growth CEO David Klein. "These retail locations will continue operating under the experienced leadership of OERGC and 420 Investments under their respective retail brands to serve Canadian consumers with high-quality in-store experiences."
OEGRC has acquired ownership of 23 Tokyo Smoke and Tweed store locations across Manitoba, Saskatchewan, and Newfoundland and Labrador. As part of the OEGRC transaction, the Tokyo Smoke brand was transferred to OEGRC and all purchased stores currently branded as Tweed will be rebranded.
420 Investments, a licensed cannabis retailer, acquired five of Canopy Growth’s corporate stores in Alberta.
As it announced in October, Canopy Growth will continue to own and operate the Tweed brand and will remain focused on bringing a portfolio of gummies, beverages, flower and pre-rolled options to consumers in Canada.