Briefing

Canopy Growth buys German vaporizer company Storz & Bickel for $220 million

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The publicly-traded pot producer is paying cash for the Tuttlingen, Germany-based firm that designs and manufactures inhalation devices. (Canadian Press)

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Talking point: Canopy said Storz & Bickel’s 17 patents will help its own vaporizer efforts. Earlier this year, the Canadian company filed for a patent on its own device, a smartphone-connected vaporizer; it’s developing that technology at a facility in Ottawa. Acquisitions have been a big part of Canopy’s growth strategy since it was founded in 2014, but the buys have mostly been other cannabis producers, not pot technology companies. Although smoking marijuana is now legal in Canada, vaping is not—Health Canada is still studying the possible harms of that form of consumption. Canopy seems to be betting that will change. Bruce Linton, the company’s co-CEO, said the deal will help it ready for “the next wave of federally-regulated products in Canada.”