Canopy Growth and Drake Launch More Life Growth Company

On November 7, 2019 Canopy Growth Corporation (“Canopy Growth”) and Aubrey Drake Graham (“Drake”) announced the entering into of various agreements to launch the More Life Growth Company, a fully licensed producer of cannabis based in Drake’s hometown of Toronto, Canada.

In connection with the launch of the More Life brand, More Life Growth Company, a previously wholly owned subsidiary of Canopy Growth has issued shares to certain entities that are controlled by Drake. Following the issuance of the shares, Drake holds a 60% ownership interest in the More Life Growth Company, with Canopy Growth retaining a 40% ownership. The More Life Growth Company owns all of the issued and outstanding shares of an entity which is licensed by Health Canada for the cultivation, processing and sale of cannabis at its production facility in Scarborough, Ontario.

As consideration for the issuance of the shares of the More Life Growth Company, Drake has granted More Life Growth Company the right to exclusively exploit certain intellectual property and brands in association with the growth, manufacture, production, marketing and sale of cannabis and cannabis-related products, accessories, merchandise and paraphernalia in Canada and internationally. The More Life Growth Company has sublicensed such rights in Canada, providing Canopy Growth with the exclusive rights to distribute Drake’s More LifeTM products in Canada.

Canopy Growth and Drake have entered into a shareholders agreement, investor rights agreements, and various other ancillary agreements to govern the operations of the More Life Growth Company. In connection with these arrangements, Canopy Growth has the right to nominate two directors to the board of the More Life Growth Company as well as a pre-emptive right to maintain its ownership interest in the More Life Growth Company.

Cassels Brock & Blackwell LLP represented Canopy Growth with a team that included Jonathan Sherman, Amanda Metallo, Luke Woolford and Tayyaba Khan (Business and Cannabis), Len Glickman and Marco Ciarlariello (Intellectual Property and Cannabis), James Morand (Taxation and Cannabis), and Ardy Mohajer (Real Estate and Cannabis).

Reed Smith LLP acted for Drake with a deal team that included Aron Izower, Wayne Uffleman, Aaron Bourke, Stacy Lee, Kevin Gallagher, Eric Zwilling and James Tandler (Corporate), Jeffrey Korenblatt (Tax), and Toam Rubinstein and Michael Isselin (Entertainment).