Drake just announced he’s partnering with the Canadian cannabis company Canopy Growth and launching a cannabis line called More Life Growth. Canopy Growth is a publicly-traded cannabis company that focuses on “advancin[ing] the world’s perception of cannabis by focusing on research, product development and innovative production capabilities,” according to its website. More Life Growth will be based out of Toronto, where Drake was born and raised.
Drake is considered the founder of More Life Growth, a company the entrepreneur says is centered around “wellness, discovery and overall personal growth.”
Canopy Growth already has operations in over a dozen countries, in five total continents. It runs eleven licensed cannabis production sites, covering more than 10.5 million square feet of production capacity. Drake said in a statement that he envisions his More Life Growth also becoming a worldwide, world-class force in the cannabis industry. With the setup he’s coming into, it doesn’t seem like he’s far off from his vision.
“The opportunity to partner with a world-class company like Canopy Growth on a global scale is really exciting. The idea of being able to build something special in an industry that is ever-growing has been inspiring. More Life and More Blessing,” said Drake.
Canopy Growth offers a truly impressive variety of products. The company dabbles in “diversified cannabis,” hemp, and cannabis devices; it offers curated cannabis in dried, oil, and Softgel capsules; and one of its subsidiaries, Storz & Bickel GmbH & Co. KG makes cannabis medical devices.
As recreational marijuana goes, Drake has definitely chosen the right market – Canada is extremely liberal. Recreational cannabis was first legalized in Canada nationwide in October 2018 through the Cannabis Act. Adults in the country can legally possess up to 30 grams of marijuana in public, and share that amount with other people over the age of 18. You can grow up to 4 of your own cannabis plants at home, and make your own edibles. You can even buy weed online from federally licensed producers.
The CEO of Canopy Growth Corporation, Mark Zekulin, said in a statement that he and Drake share a vision to create best-in-class cannabis products.
“Drake’s perspective as a culture leader and entrepreneur combined with Canopy Growth’s breadth of cannabis knowledge will allow our new company to bring an unmatched cannabis experience to global markets,” said Zekulin.“We anticipate a long, successful, and mutually beneficial working relationship.”
The More Life Growth Company cultivates and produces cannabis at a facility in Scarborough, Ontario, under a license from Health Canada.
Here’s the breakdown of the company, and its partnership with Drake: the More Life Company used to be a wholly-owned subsidiary of Canopy Growth. Instead, More Life is now functioning brand under Canopy, with Drake controlling 60% ownership interest in the More Life Growth Company. Canopy Growth owns the other 40% of the brand.
Canopy Growth will handle day-to-day operations and maintenance at that facility, and is the only company that can distribute the cannabis grown there.
If you want to get into the nitty-gritty of it: Under a shareholder agreement, Canopy Growth retains the right to nominate two directors to the board of the More Life Growth Company. Canopy Growth is also exclusively responsible for growth, manufacture, production, marketing, and sale of the products the partners create; that includes not only cannabis and cannabis products, but also merchandise, accessories, and paraphernalia.
“From product and process innovation to market execution, Canopy Growth is driven by a passion for leadership and a commitment to building a world-class cannabis company one product, site and country at a time,” it reads on Canopy Growth Corporation’s website.
Meanwhile, cannabis under the More Life brand will focus on “wellness, discovery and overall personal growth with the hope of facilitating connections and shared experiences across the globe.”
This is not Drake’s first business venture outside of music and television. He also has partial ownership over a number of different brands and has dipped his paintbrush into other fields like sports, fashion, and film.
And as mentioned at the beginning of this article, this is not Canopy Growth’s first partnership with a celebrity. Seth Rogan and his writing partner Evan Goldberg have their own recreational cannabis brand with Canopy Growth called “Houseplant.” Martha Stewart is working with the company to produce other lines of weed. And alcohol companies are getting their foot in the door as well – the producer of Corona and Mondavi Wines, Constellation Brands, invested $5 billion in Canopy Growth.
Drake is partnering with a company that is already doing just fine without the boost his celebrity status brings. Canopy Growth just released its second-quarter financial results for the Fiscal Year 2020, and there are some jaw-dropping highlights.
- Canopy Growth established a leading market share across Canada.
- It reached a share of over 35% in Canada’s most developed market for recreational marijuana, Alberta.
- Consumer demand for recreational cannabis grew 17% between the first and second quarters, and the global market for medicinal marijuana grew 23%.
- Cannabis gross revenues grew 2% between the first and second quarters of the fiscal year.
“Our retail store sales are growing on an overall and same-store basis, our Canadian medical revenues are up, and international medical sales are growing on both an organic and inorganic basis,” said Zekulin.
Zekulin says Canopy Growth has spent the past five years investing in market research, product development, marketing, and production engineering to unveil what the CEO calls “Cannabis 2.0.”
“This marks the end of significant expansion investments in Canada and we are confident that the high quality, differentiated beverage, vape, and edible products that we are bringing to market combined with a retail channel that we expect to grow significantly next fiscal year, will drive the next leg of growth for our business.”