By Davit Kirakosyan
Canopy Growth Corp. (NASDAQ:CGC) (TSX:WEED) announced Tuesday that it has entered into agreements to divest its retail business across Canada, including the stores operating under the Tweed and Tokyo Smoke retail banners.
According to the agreement, OEG Retail Cannabis (OEGRC) will acquire ownership of 23 Tokyo Smoke and Tweed store locations across Manitoba, Saskatchewan, and Newfoundland and Labrador.
The company has also reached an agreement with 420 Investments Ltd. in which the latter has agreed to acquire five Canopy retail locations in Alberta.
The closing of both transactions is subject to regulatory approvals and other customary closing conditions.
Canopy is expected to realize operational savings through these transactions, resulting in its projected savings in selling, general, and administrative (SG&A) costs coming in closer to the high end of the annualized expected target range announced on April 26.