CanniMed acquires Newstrike Resources as cannabis market heats up
CanniMed Therapeutics has become the latest firm to become involved in the increasingly active Canadian cannabis market, having announced that it will be acquiring industry operator Newstrike Resources.
“This is a watershed moment for Up Cannabis as we prepare for the opening of the recreational cannabis market opportunity in 2018,” said Jay Wilgar, President and CEO of Up Cannabis. “This business combination with CanniMed positions our collective team as a clear market leader, and we will work tirelessly to ensure that we keep building a brand and product offering that resonates unequivocally with the market.”
With Newstrike Resources being the parent company of Up Cannabis, CanniMed will use the acquisition to combine with one of Canada’s leading cannabis brands, creating a solid foundation to become a leading figure in the global market.
“This is a transformational strategic acquisition for our company, which will position CanniMed and Up Cannabis together as premium players in the emerging recreational cannabis marketplace, while equally staying true to our mandate to provide the best treatment and care to medical patients,” said Brent Zettl, President and CEO, CanniMed. “Together, we recognize the importance of brand loyalty and will continue to build products, programs and resources to showcase our leadership in the cannabis arena.”
The announcement marks the latest in a flurry of similarly large agreements, with Green House Brands having partnered with Canopy Growth to launch in Canada last week.
Should the offer pass with Newstrike shareholders, the transaction is expected to close in January 2018.