Canopy announced it will give Toronto rapper Drake a 60% stake in the newly created company More Life Growth (named after Drake’s 2017 More Life mixtape). The company will take over a licensed Toronto production facility licensed by Canopy, who will continue to operate it and distribute its products.
Financial Post, Drake
- The unused 50,000 sq.-ft facility used to belong to Bedrocan, acquired by Canopy in 2015. The company was restructured in order to move the cultivation license to More Life.
Globe and Mail
- The Globe‘s Mark Rendell said, “Canopy’s transaction appears to solve two problems: what to do with an underused asset; and how to get around restrictions on celebrity endorsements.”
- More Life will have the right to use Drake-related brands and intellectual property in developing a brand focused on “wellness, discovery, and overall personal growth.”
The Star, Straight Cannabis
Canopy reportedly beat Aurora to a deal with Drake, thanks in part to negotiations the hip-hop star made with ousted Canopy co-founder and co-CEO Bruce Linton. Insiders hope Drake’s entry into the Canadian market will revitalize consumer interest in legal REC while normalizing the sector for consumer-packaged-goods (CPG) companies.
- Linton said this could be Drake’s “Beats By Dre moment.”
- In March, Canopy acquired 25% of Seth Rogen’s Toronto-based REC brand Houseplant. The same month, Canopy brought Martha Stewart in at an advisory position, while in 2016 Canopy signed a deal with Snoop Dogg to use his brands, including Leafs By Snoop (later changed to LbS).
CBC, Globe and Mail, NewsWire
- Drake is far more visible than Rogen or Stewart, and perhaps even than Snoop. As a business owner, Drake can promote More Life’s products on Instagram and other social media without incurring the wrath of Health Canada.