Canopy Growth (NASDAQ:CGC) on Tuesday said it would divest its retail business across Canada, including stores operating under brands such as Tweed and Tokyo Smoke.
The decision supports the company's strategic objectives of streamlining its Canadian operations, the cannabis marketer said in a statement.
CGC said it had reached an agreement with licensee partner OEG Retail Cannabis to sell its corporate stores outside of Alberta as well as all Tokyo Smoke-related intellectual property.
OEG in a separate statement said it was acquiring 23 Tweed and Tokyo Smoke stores from the company in Manitoba, Saskatchewan, and Newfoundland and Labrador.
OEG said it would be sole owner of the Tokyo Smoke brand and trademark post deal closing, and all Tweed retail stores acquired as part of the deal would be rebranded.
Canopy Growth also reached an agreement with 420 Investments (FOUR20) under which FOUR20 had agreed to acquire the ownership of five retail locations in Alberta.
CGC did not disclose the terms of the deals.
Canopy (CGC) said operational savings through the deals were expected to result in its projected selling, general, and administrative cost savings being closer to the high end of its previously announced annualized target range.
Nasdaq-listed shares of the cannabis company earlier closed +4.4% at $2.86.
Also read: On Monday, the Canadian government started a legislative review of the 2018 Cannabis Act, legislation that legalized the sale of marijuana in the country.