SMITHS FALLS, Ont. — Cover Development Corp. is not concerned in a hashish enterprise it was pursuing with rapper Drake.
The Smiths Falls, Ont., hashish firm says in an e-mail that it has divested its participation in Drake’s Extra Life Development Firm.
Cover and Drake introduced they’d work collectively in November 2019 and structured their partnership round an settlement the place Drake would maintain a 60 per cent stake in Extra Life and Cover would management the remaining 40 per cent.
In monetary statements Cover filed this week, the corporate says each events agreed to terminate their sublicense settlement at the beginning of March and Cover acknowledged a $10.3-million impairment on the funding later that month.
The statements additionally present that Cover “derecognized” virtually $33.7 million in remaining minimal royalty obligations owing to Extra Life that month.
Cover didn’t share why it pursued the divestiture and Drake’s publicists and the company representing him didn’t instantly reply to requests for remark.
This report by The Canadian Press was first printed June 2, 2021.
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The Canadian Press