Canopy Growth Corporation (TSX:WEED), one of the Canadian marijuana stocks, said it will supply medical cannabis to Centric Health Corporation’s (TSX:CHH) seniors in this market news
SmallCapPower | September 7, 2018: Canopy Growth Corporation (TSX:WEED) Wednesday announced that it has entered into multi-year supply and service agreements with Centric Health Corporation (TSX:CHH) for the provision of medical cannabis. As per the agreements, Canopy Growth, one of the Canadian cannabis stocks, will be the preferred education partner and supplier of choice of medical cannabis, mainly via its Spectrum Cannabis brand, to Centric Health and the seniors that it serves both in long-term care and retirement residencies, as well as seniors living in the community.
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Spectrum Cannabis will work in collaboration with Centric Health for education of Centric Health’s clinical pharmacists as well as other healthcare partners, residents and seniors and their families, on the benefits and potential applications of medical cannabis.
Canopy Growth Corp’s President and Co-CEO Mark Zekulin remarked, “We believe that our partnership with Centric Health will help reduce many of the existing gaps in the continuing care space by having a trusted partner at our side who can provide education, assist in policy development and, most importantly, provide clinical pharmacist oversight of medical cannabis through medication management. The continuing care space is comprised of a patient population that can greatly benefit from the therapeutic effects of medical cannabis.”
Additionally, Canopy Growth and Centric Health have also entered into a separate business development agreement in which Canopy Growth has advanced funds to Centric Health to aid with improved education and assistance programs. Under this business development agreement, Centric Health issued 850,000 warrants to Canopy Growth at an exercise price of C$0.25 per common share for a life of 48 months with the vesting date set at September 4, 2020.
David Murphy, Centric Health’s President and Chief Executive Officer, said, “Our strategic relationship with Canopy Growth leverages Centric’s national Specialty Pharmacy footprint and respected clinical pharmacists with their sophisticated educational platform and range of medical cannabis products, including the Spectrum Cannabis line that makes it easy for seniors to understand the strength and dosage of the medical cannabis they are using as part of their treatment program. The combination of Centric Health and Canopy Growth capabilities will ensure that, where a healthcare practitioner has determined medical cannabis is appropriate, seniors and home operators will have the best possible support and oversight for medical cannabis treatments.”
Canopy Growth Corporation trades at a market capitalization of C$15.19 billion on the TSX with a price-to-book multiple of 12.13x.
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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