| | | FP says Drake's Canopy deal gets around ad rules
Canopy Growth Corp (C:WEED)
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Friday November 8 2019 - In the News
The Financial Post reports in its Friday, Nov. 8, edition that Drake is getting into weed through a cleverly structured deal that could circumvent strict advertising rules that govern the promotion of the once prohibited herb. The Post's Vanmala Subramaniam writes that Drake announced Thursday the launch of his new cannabis company More Life Growth, a joint venture with Canopy Growth in which Drake will own 60 per cent and Canopy the remaining 40 per cent. As part of the deal, More Life will become the beneficial owner of a cannabis production facility in the Toronto suburb of Scarborough, Ont., that is already being operated by Canopy. "The structure of setting up the joint venture between Canopy and Drake's new company is a very clever way around the general sponsorship prohibition because he's not technically being paid by Canopy to promote cannabis," said Fire & Flower vice-president Chris Bolivar. Cannabis advertising rules in Canada prohibit any kind of endorsement that glamourizes cannabis or promotes it as a lifestyle. The Post notes that anything Drake touches tends to become part of the country's cultural fabric, potentially giving More Life Growth an edge over other cannabis brands.
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