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Rapper Drake gestures after watching an NBA basketball Western Conference Play-In game between the Los Angeles Lakers and the Golden State Warriors Wednesday, May 19, 2021, in Los Angeles. (AP Photo/Mark J. Terrill)
SMITHS FALLS, Ont. -
Canopy Growth Corp. is no longer involved in a cannabis venture it was pursuing with rapper Drake.
The Smiths Falls, Ont., cannabis company says in an email that it has divested its participation in Drake's More Life Growth Company.
Canopy and Drake announced they would work together in November 2019 and structured their partnership around an agreement where Drake would hold a 60 per cent stake in More Life and Canopy would control the remaining 40 per cent.
In financial statements Canopy filed this week, the company says both parties agreed to terminate their sublicense agreement at the start of March and Canopy recognized a $10.3-million impairment on the investment later that month.
The statements also show that Canopy "derecognized" almost $33.7 million in remaining minimum royalty obligations owing to More Life that month.
Canopy did not share why it pursued the divestiture and Drake's publicists and the agency representing him did not immediately respond to requests for comment.
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