Following the launch of their joint cannabis venture in 2019, it has been revealed that Canadian rapper Drake and cannabis products company Canopy Growth Corp. have parted ways.
On Wednesday, Canopy Growth announced that it is no longer involved in the cannabis venture, More Life Growth Company, following the announcement of the collaboration in November 2019.
In the original partnership structure, it was agreed that Drake would hold a 60% stake in the venture, leaving Canopy Growth to control the remaining 40% stake.
The Canadian Press revealed the news after Canopy Growth filed financial documents this week, showing the termination of the sublicense agreement at the start of March this year. Later that month, Canopy also “recognised a $10.3 million impairment on the investment”.
According to records, the cannabis company also “derecognised” close to $33.7 million in remaining royalty obligations to More Life in the same month.
The reasons behind the separation remain unknown as both Drake and his publicists and Canopy Growth yet to comment on the termination.
Drake is not the only musician to recently announce their venture into the growing recreational cannabis sector. Back in October last year, billionaire rapper and businessman Jay-Z also announced the launch of his cannabis company, Monogram.
Monogram, a high-end cannabis flower and pre-rolls retailer based in California, is the result of a collaboration between the rapper and California-based cannabis company, Caliva.