Canopy Growth Corp (TSE:WEED) subsidiary, Bedrocan Canada Inc. has started arbitration measures against Bedrocan International BV seeking performance of latter’s contractual commitments under the LDA between the parties.
Bedrocan Canada claims the Licensor has withheld and/or withdrawn designs, support and services opposing to the Licensor’s contractual obligations. Now because Bedrocan International processes cannot be changed independently of the Licensor, Canopy subsidiary is now seeking redress through the process set out in the LDA.
Canopy Growth, then working as Tweed Marijuana Inc., closed its acquisition of Bedrocan Canada in 2015. The deal was made in attempt to diversify the brand identities and growing platform held by the firm. Since this time, the company has added a considerable number of brands and rising capacity to its platform. Through this expansion process, Bedrocan Canada operations have reduced as a fraction of total capacity and brand equity within the Canopy family of firms.
Irrespective of the Licensor’s inaction, Canopy has consistently fulfilled its contractual obligations as a licensee. The approved facility working as Bedrocan Canada continues and will stay an operating asset of company.
Canopy expects that with the help of arbitration Bedrocan International will conform with its contractual obligations to advance its intellectual property with the anticipation of achieving an increased level of efficiency, standardization and reliability that have become the benchmark of company’s operations. As this topic is now being arbitrated, the firm will provide no further update at this time.
Canopy marks as a global diversified cannabis firm, offering curated cannabis varieties and distinct brands in capsule, dried and oil forms. Through its subsidiaries, the firm runs numerous state-of-the-art manufacturing facilities with over 50% a million square feet of GMP-licensed indoor and greenhouse manufacturing capacity, all to an incomparable level of quality assurance measures and testing. The company also has many associations with leading names in Canada as well as other regions.