Drake Is Out of Cannabis

Drake Is Out of Cannabis Business

Drake is out of the cannabis business. Less than two years after partnering together, Canopy Growth Corp has severed the relationship with Drake’s Company, More Life Growth Co.  

The Deal is Terminated 

Canopy and Drake announced they would work together in November 2019 and structured their partnership around an agreement where Drake would hold a 60 per cent stake in More Life and Canopy would control the remaining 40 per cent. 

The original agreement was for Canopy to Drake’s facility in Scarborough, Canada for research and development of plant science and science development projects. Apparently, those plans didn’t work out.

Both parties agreed to end their sublicensing agreement in March, and Canopy recognized a $10.3 million impairment later that month. Canopy also “derecognized” $33.7 million in remaining minimum loyalty obligations to Drake’s company.

Minor Setback for Drake

Deals like this fall trough all the time. The weed industry is very new, and it can be hard to gain traction. While Drake may no longer partner with Canopy, his business, More Life Growth Co. is still very alive. We haven’t heard the last of Drake in cannabis!

Drake’s dive into cannabis has hit a snag, but this is just one of Drake’s many investments. We have a feeling that Drake will recover quickly from this setback.

Written by,

Joe Gibbs

Instagram: @joegibbsey