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Ontario pot producers reach for new highs with weed merger

A woman holds up a bud of marijuana.
A woman holds up a bud of marijuana. THE CANADIAN PRESS/AP/Eric Risberg

TORONTO – Tweed Marijuana is offering to buy Bedrocan Cannabis Corp. in a friendly deal that would combine the two companies into what they say would be Canada’s largest licensed pot producer.

Bedrocan’s shareholders will receive a total of 33.9 million common shares of Tweed, worth about $61 million as of the close of business on Tuesday.

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They say the deal will combine Tweed’s consumer-oriented business and Bedrocan’s base in the clinical and research communities.

Together they will have the capacity to sell 6,000 kilograms of marijuana per year across a variety of product lines.

Tweed has two production facilities in Ontario and distributes marijuana to patients across Canada under federal licences that allow the use of cannabis for treatment of certain medical conditions.

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Bedrocan produces pharmaceutical-grade cannabis.

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