Following an announcement earlier today that Aurora Cannabis is looking to buy Uruguay-based ICC Labs for $290 million in stock, Canopy Growth Corp has subsequently announced they are seeking to buy Uruguay.
Aurora and Canopy have an ongoing rivalry for largest cannabis company in the universe, and today’s announcement are just one more reflection of this ongoing oneupmanship between the two bud behemoths.
The Aurora/ICC deal is reported to be subject to court approval and a two-thirds majority vote by ICC shareholders. Canopy’s intention, say industry insiders, in seeking to buy the entire country of Uruguay is to force the court’s hands in dis-approving the deal.
Uruguay was the first country to legalize cannabis for non-medical use in 2013, with a system not all that dissimilar to Canada’s legalization model, with Licensed Producer selling to retailers and consumers having the option to grow their own or buy from pharmacies.
The country has a population about 3.4 million, or about one tenth of the population of Canada and ICC is one of only two companies currently licensed to grow cannabis for the consumer market in Uruguay.
Canopy, with several million feet of approved cannabis grow space, says they could easily supply cannabis for the entire Uruguay population. Rumours the company seeks to change the country’s name to Lintopia are as yet unconfirmed.
*This is a satirical article so make sure you make major investment decisions based entirely on this with no other outside research.