Canopy Growth Corp (TSX: WEED) (NASDAQ: CGC) this morning closed the acquisition of an Ontario-based cannabis brand. Known as Ace Valley, the acquisition is expected to “strengthen Canopy’s industry leading house of brands.”
The arrangement will see Canopy wholly acquire the Ace Valley brand, which will then see an expansion to markets across Canada while also expanding the product portfolio. The firm currently has a number of “ready to enjoy” products, as well as a loyal following among consumers. Financial terms of the transaction however were not provided by the company.
The brand reportedly holds top 5 and top 10 market positions within the province of Ontario across a range of SKUs it current holds. Revenue growth and cost synergies are expected to be found following the acquisition, although the company again was vague on the topic.
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The acquisition follows the firms credit agreement that brought in US$750 million via a senior secured term loan.
Canopy Growth last traded at $40.36 on the TSX.
Information for this briefing was found via Sedar and Canopy Growth. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
