Canadian medical cannabis producer Canopy Growth Corp. has partnered with an upstart Australian medical marijuana company, AusCann, in a deal aimed at allowing both companies to expand internationally.
Under the terms of the agreement, Canopy will get a 15% ownership stake in AusCann, with an option to increase its share by an additional 5%.
In exchange, Canopy will offer AusCann guidance on production, quality assurance and operations, as well as strategic advice, The Age newspaper of Melbourne reported. The Australian company is positioning itself to become an MMJ producer this year.
Australia legalized MMJ in February. The industry is still developing, meaning there are likely similar opportunities for partnering with – and investing in – upstart MMJ firms in Australia. Colorado-based infused products manufacturer Dixie Brands announced a partnership with an Australian firm last November.
Canopy is a supplier for Canadian MMJ brands Tweed and Bedrocan, which merged last summer to become the largest medical cannabis retailer in Canada. Canopy is listed on the Toronto Stock Exchange.