Canopy Growth Sells Off Its Canadian Retail Operations

Canopy Growth Corporation (TSX: WEED) (NASDAQ: CGC), a cannabis consumer product company, is divesting its retail operations across Canada. The Smith Falls, Ontario-based company will cease operating its Tweed and Tokyo Smoke stores.

Existing Canopy Growth licensee partner, OEG Retail Cannabis, that owns and operates the Canopy Growth’s franchised Tokyo Smoke stores in Ontario, has agreed to acquire ownership of the 23 Tokyo Smoke and Tweed store locations across Manitoba, Saskatchewan, Newfoundland and Labrador, as well as all Tokyo Smoke-related intellectual property.

Canopy Growth also reached an agreement with 420 Investments Ltd. to acquire the ownership of its five retail locations in Alberta. The stores will be rebranded under FOUR20’s retail banner.

Canopy Growth will continue to own and operate the Tweed brand — one of the industry’s highest impact brands. The company says it is focusing on streamlining its Canadian operations to advance its premium brand-driven portfolio.

“We are taking the next critical step in advancing Canopy as a leading premium brand-focused CPG cannabis company while furthering the Company’s strategy of investing in product innovation and distribution to drive revenue growth in the Canadian recreational market,” said David Klein, CEO, Canopy Growth.