CanniMed
{{Short description|Canadian public licensed producer of medical cannabis}}
{{Infobox company
| name = CanniMed Therapeutics Inc.
| logo = CanniMed logo.svg
| caption =
| type = Subsidiary
| traded_as = {{TSX was|CMED}}
| fate =
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| successor =
| foundation = {{Start date and age|1988}}
| founder = Brent Zettl
| defunct =
| location_city = Saskatoon, Saskatchewan
| location_country = Canada
| location =
| locations =
| area_served = Canada
| key_people =
| industry = Medical Cannabis
| products = Medical cannabis
| services =
| revenue =
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| net_income =
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| owner =
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| parent = Aurora Cannabis
| divisions =
| subsid =
| homepage = {{ubl|{{url|http://www.cannimed.ca/}}}}
| footnotes =
| intl =
}}
CanniMed Therapeutics Inc. is a Canadian public licensed producer of medical cannabis. It is primarily focused on cannabis oil. The company's predecessor, Prairie Plant Systems, was established in 1988 and is located in Saskatoon, Saskatchewan. In 2013 CanniMed became the first cannabis producer to be licensed under Health Canada regulations that were issued that year. It went public in 2016, and in March 2018 almost all of its stock was acquired by a rival producer, Aurora Cannabis, following a hostile takeover to which company management finally consented.
History
The predecessor to CanniMed, Prairie Plant Systems, was established in 1988. PPS began its business by providing fruit trees to orchards.{{cite news|last1=Egan|first1=Paul|title=Part 1: Company wants to grow quality medical marijuana in old mine|url=http://archive.freep.com/article/20120422/NEWS15/204220533/Company-wants-grow-quality-medical-marijuana-old-mine|work=Detroit Free Press|date=April 22, 2012 |archiveurl=https://web.archive.org/web/20151008151217/http://archive.freep.com/article/20120422/NEWS15/204220533/Company-wants-grow-quality-medical-marijuana-old-mine|archivedate=October 8, 2015}} {{cite news |last1=Egan|first1=Paul|title=Part 2: Underground pot farm could breathe new life into U.P. mining town |url=http://www.freep.com/article/20120423/NEWS15/204230351/Underground-pot-farm-could-breathe-new-life-into-U-P-mining-town|work=Detroit Free Press|date=April 23, 2012|archiveurl=https://web.archive.org/web/20120425211500/http://www.freep.com/article/20120423/NEWS15/204230351/Underground-pot-farm-could-breathe-new-life-into-U-P-mining-town|archivedate=April 25, 2012}} Fruit products include Saskatoon berries, haskap (blue honeysuckle) and dwarf sour cherries. In 1990, it entered a joint venture with Hudbay to establish an underground growth chamber in the Trout Lake mine in Flin Flon, Manitoba.
In 2000, PPS received a contract from Health Canada to grow medical cannabis.{{cite book|url=https://archive.org/details/medicalizationof00crow|title=The Medicalization of Cannabis.Wellcome Witnesses to Twentieth Century Medicine, vol. 40.|date=2010|publisher=Wellcome Trust Centre for the History of Medicine at UCL|isbn=9780854841295|editor1-last=Crowther|editor1-first=S M|location=London|editor2-last=Reynolds|editor2-first=L A|editor3-last=Tansey|editor3-first=E M|url-access=registration}} It used its facility in Flin Flon for this purpose.{{Cite news|url=http://www.cbc.ca/news/canada/manitoba/medical-marijuana-operation-halted-in-flin-flon-1.780494|title=Medical marijuana operation halted in Flin Flon|work=CBC News|access-date=2018-01-23|language=en}} From that time until 2013, PPS was the only company given a Health Canada license to grow cannabis, although as of 2012 only 12% of medical cannabis users used PPS, with most of the rest growing their own cannabis.{{Cite web|url=https://www.cbc.ca/amp/1.799488|title=CBC News - Marijuana's journey to legal health treatment: the Canadian experience|website=www.cbc.ca|language=en|access-date=2018-01-23}} In 2000 PPS set up a US subsidiary called SubTerra, and in 2003, it acquired the White Pine mine in Michigan, for use in bio-pharmaceutical research. In 2009, PPR lost its lease to the Flin Flon facility when a deposit of zinc was discovered below it, and so the company built its first above-ground cannabis growing facility.{{cite web|title=Clean Innovation in Focus: Prairie Plant Systems Inc.|url=http://cetacwest.com/wp-content/uploads/2017/06/Prairie-Plant-Systems-CetacWest-SuccessStory.pdf|publisher=CETAC-WEST|date=June 2017}}{{Cite news|url=https://www.winnipegfreepress.com/opinion/analysis/high-times-over-for-marijuana-mine-161407325.html|title=High times over for marijuana mine|last=Naylor|first=Jonathon|date=2012-07-05|work=Winnipeg Free Press|access-date=2018-01-23}}
In 2012, PPS through SubTerra announced its intention to grow medical cannabis in its Michigan mine, based on the 2008 legalization of medical cannabis in Michigan.{{cite web|url=http://www.huffingtonpost.ca/2012/04/23/michigan-medical-marijuana-mine_n_1445525.html|title=Medical Marijuana Grow-Op|work=Huffington Post|last=Associated Press|date=April 23, 2012}} In 2014 SubTerra bought an Upper Michigan power company in order to secure energy supply to its research facilities.{{cite news|title=White Pine Power Plant Sold; Traxys Sale Completed|url=http://www.keweenawreport.com/news/traxys-sale-completed/|work=Keneewa Report|date=August 27, 2014}}
In 2013, Health Canada changed its medical cannabis regulations, banning in-home production and opening up commercial production to additional companies, and that year PPS and its new subsidiary CanniMed Ltd. became first producers to be certified under the regulations.{{cite news|url=https://www.theglobeandmail.com/news/national/veteran-medical-marijuana-provider-seizing-canadas-open-market/article14694198/|title=Veteran medical marijuana provider seizing Canada's open market|newspaper=The Globe and Mail|date=3 October 2013 |last1=Wingrove |first1=Josh }}{{cite news|title=Ottawa awards first medical pot licences under new rules to Saskatoon firm|url=http://www.ctvnews.ca/health/ottawa-awards-first-medical-pot-licences-under-new-rules-to-saskatoon-firm-1.1466653|publisher=CTV News|first=Jennifer |last=Graham|date=September 23, 2013}}{{cite web|title=Authorized Licensed Producers under the Marihuana for Medical Purposes Regulations|url=http://www.hc-sc.gc.ca/dhp-mps/marihuana/info/list-eng.php|publisher=Health Canada|accessdate=7 April 2018|archive-date=4 March 2014|archive-url=https://web.archive.org/web/20140304035355/http://www.hc-sc.gc.ca/dhp-mps/marihuana/info/list-eng.php|url-status=dead}}
In June 2015 CanniMed received Health Canada approval for clinical trial of cannabis in adults with osteoarthritis of the knee.{{cite news|url=https://www.theglobeandmail.com/news/british-columbia/medical-leaders-call-for-more-research-into-benefits-of-pot/article24993936/|title=More medical research needed to confirm benefits of pot, doctors say|newspaper=The Globe and Mail |date=17 June 2015 |publisher=National Post|last1=Hager |first1=Mike }}{{cite web|url=http://www.cbc.ca/news/canada/nova-scotia/dalhousie-s-medical-marijuana-study-to-evaluate-effect-on-arthritis-1.3126098|title=Dalhousie's medical marijuana study to evaluate effect on arthritis|publisher=CBC News}} In January 2016, CanniMed received Health Canada approval to sell edible cannabis oil.{{Cite news|url=https://globalnews.ca/news/2449723/cannimed-receives-approval-from-health-canada-to-sell-cannabis-oil/|title=CanniMed receives approval from Health Canada to sell cannabis oil|work=Global News|access-date=2018-01-23|language=en}} On December 29, 2016, it held an IPO on the Toronto Stock Exchange, raising $69 million.{{Cite news|url=https://thestarphoenix.com/business/local-business/cannimed-plans-10-5-million-expansion-at-saskatoon-plant|title=CanniMed plans $10.5 million expansion at Saskatoon plant|date=2017-04-19|work=Saskatoon StarPhoenix|access-date=2018-01-23|language=en-US}} The new public company was named CanniMed Therapeutics, and had Cannimed Ltd. and Prairie Plant Systems as subsidiaries. In March 2017, it announced a deal to distribute its products with PharmaChoice, a Canadian co-operative pharmacy chain.{{Cite news|url=https://calgaryherald.com/business/local-business/aurora-cannabis-considers-entering-retail-market-amid-uncertainty-it-will-be-allowed|title=Aurora Cannabis considers entering retail market amid uncertainty it will be allowed|date=2017-09-06|work=Calgary Herald|access-date=2018-01-23|language=en-US}} In April 2017, it announced a $10 million expansion of its facility in Saskatoon.
In November 2017, Aurora Cannabis started trying to acquire CanniMed, and claimed it had the support of 38% of shareholders.{{Cite news|url=http://www.cbc.ca/news/business/cannimed-therapeutics-aurora-cannnabis-takeover-bid-1.4403189|title=CanniMed tells shareholders to wait while it reviews Aurora offer|work=CBC News|access-date=2018-01-23|language=en}} CanniMed management responded by rejecting the offer, and proposing an alternative merger with Newstrike Resources, a recreational cannabis firm, instead.{{Cite news|url=http://www.cbc.ca/news/business/aurora-cannabis-cannimed-therapeutics-takeover-bid-1.4417757|title=Aurora takeover bid 'makes no sense,' based on inflated share price: CanniMed|work=CBC News|access-date=2018-01-23|language=en}} In January, Newstrike shareholders approved the proposed merger,{{Cite news|url=https://ca.reuters.com/article/businessNews/idCAKBN1F62YO-OCABS|archive-url=https://web.archive.org/web/20180124070815/https://ca.reuters.com/article/businessNews/idCAKBN1F62YO-OCABS|url-status=dead|archive-date=January 24, 2018|title=Up Cannabis-parent Newstrike's shareholders approve sale to CanniMed|author=Reuters Editorial|work=CA|access-date=2018-01-23|language=en-CA}} but CanniMed management started to reconsider Aurora's offer.{{Cite web|url=http://business.financialpost.com/news/cannimed-postpones-shareholder-vote-will-hold-talks-with-suitor-aurora-cannabis|title=CanniMed postpones shareholder vote, will hold talks with suitor Aurora Cannabis|website=business.financialpost.com|access-date=2018-01-19}} In January 2018, Cannimed called off its proposed acquisition of Newstrik and agreed to be bought by Aurora for $1.1 billion in stock and cash to create a larger company than the industry leader at the time, Canopy Growth Corporation.{{cite news|last1=Saminather|first1=Nichola|title=Canada's Aurora Cannabis to buy rival to create world's most valuable weed firm|url=https://www.reuters.com/article/us-cmed-m-a-auroracannabis/canadas-aurora-cannabis-to-buy-rival-to-create-worlds-most-valuable-weed-firm-idUSKBN1FD1T6|work=Reuters|date=January 24, 2018}} Aurora had put out an offer to buy CanniMed's stock from its holders for cash and Aurora stock; the offer terminated at the end of March and by that time Aurora owned around 96% of CanniMed stock, and had paid out around 69.3 million of its shares and $134 million in cash. Aurora said at that time that it would compel the remaining shareholders to sell their stock and would formally absorb CanniMed at a later date.{{cite news|title=Press release: Aurora Cannabis Finalizes CanniMed Acquisition|url=https://www.newcannabisventures.com/aurora-cannabis-finalizes-cannimed-acquisition/|work=Aurora via New Cannabis Ventures|date=March 28, 2018}} In April 2018 the CEO of CanniMed, Brent Zettl, resigned and Andre Jerome was appointed interim CEO.{{cite news|title=CanniMed CEO resigns, Aurora Cannabis SVP takes role in interim|url=http://www.canadianbusiness.com/business-news/cannimed-ceo-resigns-aurora-cannabis-svp-takes-role-in-interim/|work=Canadian Business|date=5 April 2018}} Around the time of acquisition CanniMed's stock price rose dramatically as people anticipated the legalization of cannabis in Canada in the summer of 2018, raising concerns about a bubble.{{cite news|last1=Murphy|first1=Mike|title=Getting too high? Canadian marijuana stocks skyrocket, raising bubble fears|url=https://www.marketwatch.com/story/getting-too-high-canadian-marijuana-stocks-skyrocket-raising-bubble-fears-2018-04-02|work=MarketWatch|date=April 3, 2018}}
In June 2020, Aurora cannabis announced the closure of the Saskatoon facility.
References
{{reflist}}
External links
- [http://www.cannimed.ca/ Official CanniMed website]
- [https://web.archive.org/web/19981212032013/http://www.prairieplant.com/ Official Prairie Plant Systems website]
Category:Cannabis companies of Canada
Category:Medicinal use of cannabis organizations
Category:Canadian companies established in 2013