Canopy Growth Corp (TSE: WEED) Acquires Full Stake In Spectrum Cannabis Chile As It Seeks To Consolidate Its Assets In Latin America
Canopy Growth Corp (TSE: WEED) has acquired 100% of Spectrum Cannabis Chile. The cannabis company already has majority stake in Spectrum, which is its in-market entity in Chile.
Canopy is consolidating its assets in Latin America
With this transaction, Spectrum Cannabis Chile is now fully under the umbrella of Canopy Growth. The two companies will join forces to steer developments in Latin America. This region is strategic to the company as it has a population of over 600 million people. The company is keen to tap into this huge market.
Throughout Latin America, Chile is known for having a lot of government support and a progressive regulatory framework. The country has become an ideal location for both pharmaceutical and medical research. Chile is known for having the highest number of clinical studies compared to any other Latin America country.
Revitalizing local towns in Canada
In recent years, several small towns in Canada have been struggling financially due to exist of major companies that form the lifeline of these towns. Canopy has rolled out a program of investing in these towns so as to breathe life in their economies.
Entering Smiths Falls is one of the towns that are steadily recovering, thanks to Tweed, one of the leading brands of Canopy. Canopy Growth Founder, Chairman and CEO, Bruce Linton, say they have witnessed an increase in the number of restaurants opening up in Entering Smiths Falls. He says this is a big measure of economic recovery and success.
In a recent interview, Linton said currently four restaurants have opened operations in the town and all have been having booming businesses. He noted that other restaurants are coming in town to take on global brands like Mcdonald’s Corp (NYSE: MCD), Dairy Queen and several pizza joints.
In a bid to help revive these towns, Canopy Growth, a leading player in the cannabis sector is going beyond its mandate and investing in corporate social responsibility. According to Linton, companies in many of these towns have not been socially responsible enough. He says many have their focus placed on future of the company and accumulating profits.
Linton however says that companies should start investing in the social wellbeing of these towns so that they can continually be a source of revenue. With a strong social foundation he says, these towns can experience and be able to sustain an economic boom. He encourages these companies to be aggressive in supporting the local communities.