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Marijuana plants are seen in this file photo.Matthew Staver/Bloomberg

Canopy Growth Corp. of Smiths Falls, Ont., has an agreement to buy pharmaceutical distributor MedCann, which has placed the Canadian marijuana company's Tweed-branded cannabis strains in German pharmacies.

The purchase – subject to approvals – will be made with Canopy shares, which on Friday closed at $10.60 on the Toronto Stock Exchange.

At that value, the transaction would be worth about $7.2-million upon closing.

Canopy would also pay up to 490,000 shares over two years if certain performance targets are achieved, bringing the total number of shares to be issued to about 1.16 million – one per cent of Canopy's current common shares.

Canopy Growth currently has a market value of about $1.2-billion, based on Friday's stock price.

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