View source for 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 =
| predecessor =
| successor =
| foundation = {{Start date and age|1988}}
| founder = Brent Zettl
| defunct = <!-- {{End date and age|YYYY|MM|DD}} -->
| location_city = [[Saskatoon, Saskatchewan]]
| location_country = [[Canada]]
| location =
| locations =
| area_served = [[Canada]]
| key_people =
| industry = [[Medical Cannabis]]
| products = [[Medical cannabis]]
| services =
| revenue =
| operating_income =
| net_income =
| aum = <!-- Only used with financial services companies -->
| assets =
| equity =
| owner =
| num_employees =
| 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.<ref name=DFP2012>{{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}}</ref> Fruit products include [[Saskatoon berries]], [[haskap]] (blue honeysuckle) and dwarf [[sour cherries]].  In 1990, it entered a joint venture with [[Hudbay Minerals|Hudson Bay Mining]] to establish an underground growth chamber in the Trout Lake mine in [[Flin Flon]], Manitoba.<ref name=":3" />
In 2000, PPS received a contract from Health Canada to grow medical cannabis.<ref>{{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}}</ref>  It used its facility in Flin Flon for this purpose.<ref>{{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}}</ref>  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.<ref>{{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}}</ref>   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.<ref name=DFP2012/>  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.<ref>{{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}}</ref><ref name=":3">{{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}}</ref>
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.<ref name=DFP2012/><ref>{{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}}</ref> In 2014 SubTerra bought an Upper Michigan power company in order to secure energy supply to its research facilities.<ref>{{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}}</ref>
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.<ref name=GandM>{{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 }}</ref><ref>{{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}}</ref><ref>{{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}}</ref>
In June 2015 CanniMed received [[Health Canada]] approval for clinical trial of cannabis in adults with [[osteoarthritis]] of the knee.<ref>{{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 }}</ref><ref>{{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]]}}</ref>  In January 2016, CanniMed received [[Health Canada]] approval to sell edible cannabis oil.<ref>{{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}}</ref>  On December 29, 2016, it held an IPO on the [[Toronto Stock Exchange]], raising $69 million.<ref name=":1">{{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}}</ref>  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.<ref>{{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}}</ref>  In April 2017, it announced a $10 million expansion of its facility in Saskatoon.<ref name=":1" />
In November 2017, [[Aurora Cannabis]] started trying to acquire CanniMed, and claimed it had the support of 38% of shareholders.<ref name=":2">{{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}}</ref>  CanniMed management responded by rejecting the offer, and proposing an alternative merger with Newstrike Resources, a recreational cannabis firm, instead.<ref>{{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}}</ref> In January, Newstrike shareholders approved the proposed merger,<ref>{{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}}</ref> but CanniMed management started to reconsider Aurora's offer.<ref>{{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}}</ref>  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]].<ref>{{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}}</ref>  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.<ref name=AP/> 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.<ref name=AP>{{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}}</ref> In April 2018 the CEO of CanniMed, Brent Zettl, resigned and Andre Jerome was appointed interim CEO.<ref>{{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}}</ref> 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 [[Economic bubble|bubble]].<ref>{{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}}</ref>
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]]
[[Category:2013 in cannabis]]
[[Category:Cannabis in Saskatchewan]]
[[Category:Agriculture companies established in 2013]]