Friday, May 30, 2025

Latest

Canopy Growth Finally Exercises Option To Acquire Acreage Holdings

Acreage Holdings (CSE: ACRG.A.U) is set to finally be acquired by Canopy Growth (TSX: WEED). Canopy reported this morning that it has exercised the option to acquire the multi-state cannabis operator, after years of delay due to the status of cannabis at the federal level in the US.

Canopy Growth’s subsidiary Canopy USA is to acquire the Class E subordinate voting shares, as well as the Class D subordinate voting shares, which collectively are referred to as the “fixed” and “floating” shares in what became a convoluted share structure. Canopy Growth meanwhile will obtain certain outstanding debt of Acreage in connection with the exercise of the option agreement.

That debt agreement will see Canopy purchase US$99.8 million of Acreage’s debt in exchange for US$69.8 million in cash and the release of US$30.1 million that was held in escrow in relation to the option agreement. Canopy also obtained a call right over US$45.6 million in Acreage debt that remains outstanding.

READ: Acreage Holdings Posts Negative Gross Margins In Q1 2024

“These are major steps forward and consistent with the strategy outlined by Canopy Growth to allow our shareholders to benefit from our ownership of non-voting shares in Canopy USA, and we’re excited to see this advancing as more of Canopy USA’s priority markets come online for adult use across the Midwest and Northeast,” commented David Klein, CEO of Canopy.

The exercise of the option follows Canopy USA closing on the acquisition of Wana Wellness, CIMA Group, and 77% of Jetty, all of which closed May 31. The acquisition of Mountain High Products meanwhile is ongoing, and is expected to close in the first half of fiscal 2025.

Canopy Growth last traded at $10.93 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.

Leave a Reply

Video Articles

How To Profit From $3300 Gold? An Inside Look At A Massive 300,000 Oz Project | Martino De Ciccio

We’re At The Start of a Great Silver Boom | Ross McElroy & Andy Bowering – Apollo Silver Corp

Equinox Gold Q1 Earnings: When Everything Goes Wrong

Recommended

ESGold Begins Concentration Tests Ahead Of First Production

Sterling Metals Hits 0.21% Copper Over 482.8 Metres In First Drilling At Soo Copper project

Related News

Canopy Growth: Canaccord Forecasts $119.2 Million In Q2 Net Revenues

This morning, Canaccord Genuity released their second-quarter earnings preview for Canopy Growth Corp (TSX: WEED)...

Friday, November 6, 2020, 02:58:00 PM

Saskatchewan to Play Integral Role In Canopy Growth Corp’s Extraction Strategy

Canopy Growth Corp (TSX: WEED) (NYSE: CGC) announced this morning that it had closed the...

Wednesday, June 26, 2019, 12:26:09 PM

Canopy Growth: Analysts Anticipate Q1 Revenues Of $149 Million

Canopy Growth Corp (TSX: WEED) (NASDAQ: CGC) announced that they will be reporting their fiscal...

Tuesday, August 3, 2021, 03:28:00 PM

The Rise And Fall Of Canopy Growth

“I believe every gram produced in Canada for the next five years will be sold....

Wednesday, July 26, 2023, 02:57:00 PM

Federal Wage Subsidies Granted to Publicly Traded Cannabis Companies Eclipses $100 Million

On June 1, 2021, total wage subsidies doled out to publicly traded cannabis companies from...

Wednesday, June 2, 2021, 02:30:00 PM