Drake And Cannabis Company Canopy Growth Terminate Partnership

Drake And Cannabis Company Canopy Growth Terminate Partnership

There’s a lot of star power in the cannabis industry. Celebrities such as Snoop Dogg, Wiz Khalifa, Mike Tyson, Bella Thorne, Seth Rogen, Jay-Z, Method Man, Jaleel White, and many others have ventured into the world of legal marijuana via strains, rolling papers, and more. The “Green Rush,” as some are calling it, has taken over the nation. As states rush to legalize marijuana to get their hands on the massive tax revenues, celebrities are rushing to brand kush as their own.

Drake is one of the high-profile names connected to the ever-growing cannabis industry. Drake and cannabis company Canopy Growth Corp. announced a partnership in 2019. The agreement stated that Drake would have a 60 percent stake in his More Life Growth Company, and Canopy would control the remaining 40 percent. The venture would have catapulted Drake to the top of cannabis relevancy, although his music isn’t known to be particularly “stoner” inspired.

However, it appears that Drake and Canopy are breaking up. Maybe we’ll get a song out of it. Reports declare that the financial statements Canopy filed in early June highlight that both parties had agreed to terminate their sublicense agreement back in March. Canopy recognized a $10.3 million impairment on the investment later in the same month.

Statements also show that Canopy “derecognized” almost $33.7 million in remaining minimum royalty obligations set to be paid out to Drake’s More Life company.

“We have indeed divested from More Life and the facility in Scarborough which had been intended to be part of that agreement is now Canopy Growth’s R&D facility, where we will work on plant science and science development projects,” Jennifer White, director of communications at Canopy Growth, told Bloomberg.

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