As most companies within the Canadian cannabis industry struggle to turn a profit, Smiths Falls, Ont.-based Canopy Growth Corp. has completed a deal to exit the retail landscape across the country.
Canopy Growth said Tuesday that a previously announced deal with OEG Retail Cannabis and 420 Investments Ltd. has closed.
In the deal, Canopy will divest its 23 Tweed and Tokyo Smoke retail storefronts across Canada, including stores in Kingston, Ont.
Also part of the deal, OEGRC will take over the Tokyo Smoke brand, while the Tweed stores will be rebranded.
“The divestiture of our Canadian retail business marks an important step forward on our path to profitability and furthers Canopy Growth’s focus on generating revenue growth in the Canadian market,” said David Klein, CEO of Canopy Growth.
“These retail locations will continue operating under the experienced leadership of OERGC and FOUR20 under their respective retail brands to serve Canadian consumers with high-quality in-store experiences.”