The
OEGRC is run by the
The new deals will see OEGRC, which already owns 64 Tokyo Smoke stores, take control of 23 Tokyo Smoke and
420
Canopy did not share the value or financial terms of either deal.
However, it framed the agreements as part of its push to reprioritize the premium segment of cannabis and reduce costs, which the company has been tackling through job cuts and facility closures during the COVID-19 pandemic.
“We are taking the next critical step in advancing Canopy as a leading premium brand-focused CPG cannabis company while furthering the company’s strategy of investing in product innovation and distribution to drive revenue growth in the Canadian recreational market,’’
The retail segment of the cannabis market that Canopy is exiting has become tough to compete in as the number of pot shops has ballooned, driving competition.
Cannabis companies in both the retail and production space have also struggled to reach profitability because they keep slashing prices to compete with the illicit market and rival stores.
The average price for cannabis was
The average price for vape cartridges has similarly fallen by 41 per cent from
OEGRC has yet to reveal what pricing strategy it will take on, when it nabs Tokyo Smoke's intellectual property, but chief executive Jürgen
“OEG Retail Cannabis and
Staff working at acquired locations will keep their jobs and Canopy will continue to own and operate its Tweed brand of flower, pre-rolls and other products.
The company will also terminate a master licence agreement dating back to 2019 that allowed convenience store giant
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Companies in this story: (TSX:WEED, TSX:ATD.B)
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