Canopy Growth Corporation and Acreage Holdings have entered into a definitive arrangement agreement that grants Canopy Growth the right to acquire 100 percent of the shares of Acreage. This way Canopy Growth will get access to the US market, since it will obtain the licenses of Acreage Holdings as well. Acreage is active in over 20 States.
The deal though will only happen though when cannabis production and sale becomes federally legal in the United States and the deal is subject to obtaining the requisite prior approval of the shareholders of each of Acreage and Canopy Growth, respectively, as well as the approval of the Supreme Court of British Columbia.
"Today we announce a complex transaction with a simple objective. Our right to acquire Acreage secures our entrance strategy into the United States as soon as a federally-permissible pathway exists," said Bruce Linton, Chairman and co-CEO, Canopy Growth. "By combining Acreage's management team, licenses and assets with Canopy Growth's intellectual property and brands, there will be tremendous value creation for both companies' shareholders."
"Once the Right is exercised, the combined infrastructure, intellectual property, brands and organizational resources are expected to create a global cannabis powerhouse, with positioning ourselves in every international market for legal cannabis sales, including the U.S., Canada, and select markets across Latin America, Europe and Asia-Pacific," the company concludes.