SMITHS FALLS, Ont. - Canopy Growth Corp. (WEED.TO) has launched a Latin American subsidiary and acquired a Colombian medical marijuana company.

The Canadian licensed medical marijuana producer says it has issued nearly 1.2 million shares it valued at about $45.7 million to acquire Spectrum Cannabis Colombia, which previously operated as Colombian Cannabis.

Canopy also says it will make four payments of up to 524,576 shares it valued at about $20 million each on the satisfaction of certain milestones.

Canopy LATAM Corp., the company's new Latin American affiliate, will be led by Antonio Droghetti.

Under the deal, Canopy will also issue 595,184 shares valued at about $24.5 million to the shareholders of Canindica, a company controlled by Droghetti. Canindica shareholders may also receive four additional milestone payments valued at about $12.2 million to be paid in shares.

Canopy has also agreed to make an additional payment on July 4, 2023, to those who have completed all of their milestones by that date.