Canopy Growth (CGC) shares rose in pre-market trading on Thursday, a day after shareholders of the diversified cannabis company approved the previously-announced C$5 billion ($4 billion) private placement of 104.5 million shares and 139.7 million share purchase warrants of the company to CBG Holdings, an affiliate of Constellation Brands (STZ).
Of the 40.9% of common shares represented at the meeting, in person or by proxy, 95.4% were voted in favor of the resolution approving the transaction, Canopy said in a statement.
The transaction is expected to be completed on or before Oct. 31.
In other news, Shares of Cellular Biomedicine Group (CBMG) have resumed pre-market activity after a brief halt following the company’s announcement Thursday that it has entered into a strategic licensing and collaboration agreement with Novartis (NVS) to manufacture and supply the CAR-T cell therapy Kymriah in China.
Novartis will be the the exclusive holder of the marketing license.
Under the terms of the agreement, Cellular Biomedicine will receive $40 million in an equity purchase from Novartis at $27.43 per share for approximately 9% equity in Novartis. Novartis will receive certain royalty-free intellectual property worldwide rights to certain Cellular’s CAR-T related technology.
Cellular will also receive a single-digit escalating percentage collaboration payment based on net product sales and a mark-up from Novartis on the manufacturing cost.
Cellular will take the lead in the manufacturing process, and Novartis will lead distribution, regulatory and commercialization efforts in China.
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