Canadian marijuana producer Canopy Growth (CGC - Get Report) on Friday said it agreed to buy Beckley Canopy Therapeutics, a joint venture it initially launched in 2018 to research and develop cannabis-based medicines.
The cannabinoid-based medical research arm was initially formed in January 2018 as a joint venture between Canopy Growth and British think tank Beckley Research & Innovations. Canopy Growth partly owns the Beckley Canopy research platform.
As part of the deal, Canopy Growth also will acquire the outstanding shares of Spectrum Biomedical UK, which is the commercial arm of Canopy Growth in the U.K. The deal is expected to close within the next 60 days. Financial terms weren't disclosed.
"We're excited to continue working with the incredible management team at Beckley Canopy to accelerate our shared vision to create evidence-based cannabis formulations that will serve patients in need around the world," CEO Mark Zekulin said in a statement.
Zekulin took over as CEO following the firing of founder and CEO Bruce Linton last month, which investors and others suggested was a move by Canopy Growth's largest stakeholder, alcohol giant Constellation Brands (STZ - Get Report) , to shift the company to more conservative management and to begin producing profit.
Canopy's board is mostly controlled by executives from Constellation Brands following that company's $4 billion investment in Canopy last year.
Shares of Canopy Growth were down 0.88% at $32.57 in early Friday trading on the New York Stock Exchange.