Canopy Growth Corporation (TSX: WEED) (NASDAQ: CGC) no longer has any retail operations in Canada under its Tokyo Smoke or Tweed banners.
On Tuesday, the cannabis producer said it has closed the transactions with OEG Retail Cannabis and 420 Investments Ltd. to divest its retail operations in Canada but still owns all of Tweed products.
OEGRC has acquired ownership of 23 Tokyo Smoke and Tweed store locations across Manitoba, Saskatchewan, and Newfoundland and Labrador.
Under the agreement, the Tokyo Smoke brand has been transferred to OEGRC and all Tweed stores will be rebranded.
The agreement between Canopy and OEGRC where OEGRC would license the Tokyo Smoke brand in Ontario has finished.
“We are excited to take this important next step in the expansion of OEG Retail Cannabis and the Tokyo Smoke brand across Canada,” OEG CEO Jürgen Schreiber said.
“The close of this acquisition marks the start of something special for the retail cannabis industry and we are looking forward to bringing our award-winning customer experience, product quality and safety to more Canadians in Manitoba, Saskatchewan, and Newfoundland and Labrador.”
FOUR20, a licensed cannabis retailer, also acquired five of the company’s corporate stores in Alberta.
Read more: Canopy sells Tweed and Tokyo Smoke pot shops
“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,” Canopy CEO David Klein said in a statement.
“These retail locations will continue operating under the experienced leadership of OERGC and FOUR20 under their respective retail brands to serve Canadian consumers with high-quality in-store experiences.”
Company stock went up by 7 per cent on Wednesday to $3.36 on the Toronto Securities Exchange.