While dealing with the fallout of CEO Bruce Linton’s ouster and the successful shareholder approval gained to acquire Acreage Holdings, Ontario-based Canopy Growth (TSX: WEED; NYSE: CGC) is doubling down on expanding U.S. operations.
Today Canopy announced an extended exclusive U.S. distribution deal with Greenlane Holdings Inc (NASDAQ: GNLN).
That deal is taking place through Canopy Growth’s vaporizer-focused German subsidiary Storz & Bickel, which established the Volcano product line nearly two decades ago.
Through the updated distribution agreement, Greenlane will specifically bring the remodeled Volcano Hybrid to retail outlets in North America.
Today Canopy also revealed a series of design changes to make the Volcano more user friendly, such as Bluetooth app controls, a new touch display, faster heating, and better airflow.
Discussing the exclusive deal’s signing, Greenlane CEO and Chairman Aaron LoCascio commented:
Greenlane currently distributes products to more than 10,000 outlets in the U.S. and Canada from licensed dispensaries to local non-cannabis vape shops.
In other Canopy subsidiary news, the company’s medical wing Spectrum Therapeutics just inked a five year deal with Canadian pharmacy Medical Pharmacies Group Limited.
Through that deal, Spectrum will provide medical cannabis to senior citizens at hundreds of elder care facilities. The deal additionally sees Apollo Cannabis Clinics offering cannabis access and medical support to a wide range of pharmacy and nursing staff in the country.
With full adult cannabis legalization nearing its first anniversary in Canada, licensed producers are focusing on previously untapped markets in an effort to reach profitability, moving far beyond the typical stereotype of exclusively young consumers.
Canopy’s Chief Medical Officer Dr. Mark Ware specifically cited a lack of senior access and knowledge regarding the medical usage of cannabis in the reasoning behind the agreement.
Part of the deal includes a comprehensive education initiative tailored towards senior citizen residents in care facilities, their direct family members, and the medical professionals who work with them on-site to treat various conditions.