Canopy Growth Corporation (NYSE: CGC) announced on December 6th that the company has finalized an all-cash transaction to acquire the manufacturer of Volcano® Vaporizers and all of the company’s IP (Intellectual Property).
The transaction agreement between Canopy Growth and the manufacturers of Volcano® vaporizers, Storz & Bickel GmbH & Co. KG, totaled to €145 million or approximately $165.4 million USD. Chairman and Co-Chief Executive Officer of Canopy Growth, Bruce Linton, said, “We view this as a marquee acquisition of the most recognized technology company in the industry.”
Storz & Bickel has a distinguished track record with innovative and medically approved vaporizer production that spans over two decades. The company is mostly known for its popular medical vaporizer the Volcano® Medic and the Mighty® Medic.
Jürgen Bickel, the Chief Executive Officer of Storz & Bickel, stated, “Joining Canopy will enable S&B to take the next significant development step forward. Access to Canopy Growth’s extensive portfolio of test laboratories as well as pharmaceutical and medical-scientific know-how opens up entirely new product development opportunities.”
Risk of Prosecution for Marijuana-Related Companies. If you are considering investing in a company that is connected to the marijuana industry, be aware that marijuana-related companies may be at risk of federal, and perhaps state, criminal prosecution. The Department of Treasury recently issued guidance noting: “[T]he Controlled Substances Act (“CSA”) makes it illegal under federal law to manufacture, distribute, or dispense marijuana. Many states impose and enforce similar prohibitions. Notwithstanding the federal ban, as of the date of this guidance, 20 states and the District of Columbia have legalized certain marijuana-related activity.”