Bedrocan is returning to Canada and South America early
An arbitration tribunal rules that the Dutch medicinal cannabis producer Bedrocan International (“Bedrocan”) is allowed to resume commercial activities in Canada as of September 11, 2019, and allowed to engage the same in South America (retroactively) as of March 14, 2019.
A legal settlement agreement containing a moratorium on commercial activities between Canopy Growth Corporation and Bedrocan, prohibited Bedrocan from operating in Canada until 1 January 2020, with the same prohibition applying to South America until 7 June 2019. This moratorium was enforced by Canopy in June 2018 after both parties agreed to terminate their joint licensing agreement.
The arbitrator has now reduced the duration of this moratorium due to Canopy not meeting all the conditions set out for the termination in the license agreement. The arbitrator concluded that the mere fact that Canopy was seriously prejudiced by a reduction of the moratorium is for the account of Canopy and Canopy only. He concluded as well that Canopy could have prevented any damage (i.e. reduction of moratorium) themselves had they simply adhered to the terms of settlement in a timely fashion. Following this ruling Bedrocan will be announcing its next steps within these markets some time later this year.
Bedrocan CEO, Tjalling Erkelens believes that “lifting of the moratorium not only results in an important milestone for Bedrocan as a company, but is also very good news for Canadian and South American patients who rely on the use of medicinal cannabis and who already used medicinal cannabis from Bedrocan before the moratorium commenced.”