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Canopy paves the way to acquire Acreage

Canopy Growth exercised their option to acquire all Class E subordinate voting shares (Fixed Shares) of Acreage Holdings, Inc., following an agreement from April 2019. This means Canopy USA, a subsidiary of Canopy Growth, will now own all Fixed and Floating Shares of Acreage, making Acreage a wholly-owned subsidiary.

Additionally, Canopy Growth has partially exercised an option to acquire outstanding debt of Acreage. This involved a deal from November 2022, where Canopy Growth's subsidiary worked with Acreage's lenders. They acquired approximately $99.8 million of Acreage's debt for $69.8 million in cash and released $30.1 million held in escrow. This strategic move aligns with Canopy Growth's efforts to strengthen its financial position and leverage its investments.

Canopy Growth also announced that Canopy USA successfully acquired 100% of two companies in the Wana Brands portfolio: Wana Wellness, LLC, and The CIMA Group, LLC. They also acquired 77% of Lemurian, Inc. (Jetty). These acquisitions, completed on May 31, 2024, showcase Canopy USA's ability to execute its growth strategy. The acquisition of Mountain High Products, LLC (MHP), the third company in the Wana Brands portfolio, is expected to close in fiscal 2025 pending regulatory approval.

David Klein, CEO of Canopy Growth, expressed excitement about these advancements. He emphasized that these steps are in line with Canopy Growth's strategy to benefit shareholders through ownership of non-voting shares in Canopy USA. Klein highlighted the potential for growth and commercial synergies as more markets in the Midwest and Northeast open up for adult cannabis use.

Canopy Growth's strategic acquisitions and debt management highlight their commitment to expanding their market presence and enhancing financial stability. These actions position Canopy Growth and Canopy USA for significant growth in the evolving cannabis industry.

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