Canopy Growth and Acreage have entered into an agreement to amend the terms of the arrangement agreement dated April 18, 2019, as amended on May 15, 2019, between Canopy Growth and Acreage. The full details of the new agreement can be found here.
The new terms of the deal come amid an acknowledgement from both Canopy and Acreage that the industry faced "challenging economic environment and increasingly tighter and volatile financial market conditions, particularly for cannabis companies", BNN Bloomberg reports.
In connection with the implementation of the new arrangement, Kevin Murphy is resigning as Chief Executive Officer of Acreage and a search for his successor will commence immediately.
Mr. Murphy will continue to act as Chairman of the board of directors of Acreage and contribute to the strategic direction of the company. Director Bill Van Faasen, former Chairman, CEO and President of The Blue Cross Blue Shield of Massachusetts, will serve as Acreage’s Interim Chief Executive Officer until a permanent replacement has been identified.
“On behalf of the entire Acreage Board, I sincerely thank Kevin for his passion and commitment to building a leading cannabis enterprise across the United States,” said Douglas Maine, Chair of the Acreage Special Committee. “Kevin is a visionary entrepreneur and positioned Acreage for success in the U.S. cannabis industry. As we move forward with a renewed commitment by Canopy Growth and build upon the vision for the U.S., we are optimistic about the long-term growth prospects for our shareholders.”
“I am excited about this New Agreement and the creation of a pre-eminent and truly global cannabis company upon the occurrence of the Triggering Event. I believe the eventual federal permissibility of cannabis in the United States is inevitable and this New Agreement continues to allow our shareholders to become a part of a leading cannabis company following such changes. Moreover, as the largest shareholder of Acreage, I believe this New Arrangement allows all Acreage shareholders to participate in potential upside to their investments through the fixed exchange component of Canopy Growth stock and importantly the new Floating Shares” said Kevin Murphy, Chair of the Acreage Board.