Cannabis

Canopy Growth sells This Works skin care brand to U.K. investment firm

We’re resetting our business to have the foundation to be profitable moving forward: Canopy CEO David Klein, CEO of Canopy Growth, joins BNN Bloomberg to discuss the latest quarter for the company. Klein talks about their new asset-light business model approach and his strategy to reach profitability across all units of the business.

Canopy Growth Corp. says it has sold its This Works skin care and wellness brand to a U.K. investment firm.

The Smiths Falls, Ont.-based cannabis company says the deal with Inspirit Capital is valued at up to $15.9 million.

Under the deal, Canopy will receive an upfront payment of $4.6 million in cash and in other consideration, a loan note issued by Inspirit Capital and payments for reaching unspecified milestones.

Canopy says the deal has already closed and This Works' leadership team, staff, and intellectual property will transfer to Inspirit Capital.

The pot firm purchased This Works for $73.8 million in 2019, saying the London-based company founded in 2004 would be integral to Canopy's entry into the natural wellness industry.

This Works sells everything from moisturizers and cleansers to fragrances, sleep sprays and body oils.

"We are resolutely focused on achieving North American cannabis market leadership, and this completed sale represents a further step to enable this through the transformation of Canopy Growth into a simplified, asset-light, cannabis focused business," said Canopy chief executive David Klein in a statement announcing the sale on Monday.

"In addition to realizing the proceeds from this sale which will further strengthen our financial position, we're pleased to have found a buyer that is committed to the continued development of the This Works brand."

This report by The Canadian Press was first published Dec. 18, 2023.