Canopy Growth Closes $259.5 Million Acquisition Of Supreme Cannabis
Canopy Growth Corp (TSX: WEED) (NASDAQ: CGC) has officially completed the previously announced acquisition of The Supreme Cannabis Company (TSX: FIRE). The closing of the acquisition pushes Canopy’s control of the overall Canadian recreational cannabis market to 18.1%.
The transaction saw Canopy pay both cash and shares for the premium cannabis grower, although the cash portion was rather negligible. Shareholders of Supreme Cannabis are to receive 0.01165872 of a Canopy common share for each share of Supreme held, as well as $0.0001 in cash. A total of 9.0 million shares were issued in connection with the transaction, while $84,096.89 was paid in the form of cash, equating to a total transaction figure of roughly $259.5 million.
The transaction is expected to result in a total of $30 million in estimated synergies within the next two years, with Supreme now effectively a wholly owned subsidiary of the company.
Supreme Cannabis is expected to see its equity delisted from the Toronto Stock Exchange as of today.
Canopy Growth last traded at $28.78 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.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.
