Canopy Growth Corp. CGC, +2.02% WEED, +1.64% announced Friday an agreement to buy Beckley Canopy Therapeutics, a cannabinoid-based medical researcher. Beckley Canopy was formed in January 2018 as a joint venture between Canopy Growth and Beckley Research & Innovations to research and develop cannabis-based medicines. Canopy Growth partly owns the Beckley Canopy research platform.
As part of the acquisition, Canopy Growth will also acquire the outstanding shares of Spectrum Biomedical UK, which is the commercial arm of Canopy Growth in the U.K. the deal is expected to close within the next 60 days. Financial terms were not disclosed. Canopy Growth's stock, which was still inactive in premarket trading, has rallied 22.3% year to date, while the ETFMG Alternative Harvest ETF MJ, +0.77% has gained 15.1% and the S&P 500 SPX, +1.88% has advanced 17.2%.