SMITHS FALLS, ONT. -- Canopy Growth Corp. says it has signed a deal to sell its C3 Cannabinoid Compound Company GmbH subsidiary to German company Dermapharm Holding SE.

Under the agreement, Canopy will receive an upfront payment of $115.5 million.

It will also receive up an additional $61.4 million, subject to the achievement of certain milestones by the business.

Dermapharm is a European pharmaceutical company based in Gruenwald, Germany.

The business being sold develops and manufactures pharmaceutical products and includes Spectrum Therapeutics GmbH, THC Pharm GmbH The Health Concept and Spectrum Therapeutics Austria GmbH.

The deal, which requires regulatory approvals, is expected to close by Jan. 31, 2022 .