Canopy Growth (TSX: WEED) is reporting that Canopy USA has exercised options to acquire US-based cannabis assets. The exercise follows the company seeing its shareholders approve its Canopy USA strategy last month, enabling the cannabis giant to obtain exposure to the US market.
Canopy USA specifically has exercised options to acquire Wana and Jetty, two separate US-based entities. Wana is a cannabis edibles brand that is vertically integrated in Colorado while having exposure to 15 additional states. Jetty meanwhile is a Cali-based producer of extracts and has developed certain vape technology. It’s products are also available in three additional US states.
Post closing, Canopy USA will hold a 100% interest in Wana, and a 75% interest in Jetty. No additional consideration has been made to exercise the options, following Canopy in 2021 paying US$297.5 million for the call option to acquire Wana, and in 2022 paying US$69 million for a call option on the Jetty stake.
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“In addition to the positive signals we’re seeing on near term regulatory reform in the U.S., there’s significant potential in putting together leading brands like Wana and Jetty, and we’re excited to see how these brands can collaborate to become even stronger,” commented CEO David Klein.
Canopy Growth last traded at $13.52 on the TSX.
Information for this briefing was found via Sedar and the sources and companies mentioned. 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.
