Canada's Canopy Growth Corporation acquires Colorado-based hemp research company

The Canadian cannabis and hemp company Canopy Growth Corporation, which operates a field-scale hemp operation in Saskatchewan, will pay CAD$25 million and issue 6,221,210 shares to acquire the assets of ebbu, Inc., a Colorado-based hemp research leader. Canopy Growth will apply ebbu’s IP and R&D advancements directly to its hemp and THC-rich cannabis genetic breeding program and its cannabis-infused beverage capabilities. Through this acquisition, Canopy Growth could substantially reduce the cost of CBD production, a popular cannabinoid used in the wellness and medical spaces. Canopy Growth will retain ebbu’s assets and personnel to continue conducting R&D, as well as deploying ebbu’s IP at Canopy’s research facilities in Smiths Falls, Ontario. A further CAD$100 million may be payable to ebbu following the acquisition, if certain scientific milestones are attained within two year’s of the deal’s closing.