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.
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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.
