Wednesday, October 8, 2025

Latest

Canopy Growth Sees Shareholders Approve Canopy USA Strategy, To Begin Acquiring US Assets

Canopy Growth (TSX: WEED) is one step closer to establishing a US-based multi state operator following the receipt of shareholder approval to rearrange its capital structure.

Shareholders have voted to approve the creation of a new class of exchangeable share of the company, which will enable the creation of Canopy USA, the vehicle that the company intends to use to kickstart its entrance into the US. The new class of shares is non-voting and non-participating, and contain no rights to receive dividends.

Those new rights are key, as it will enable the stock exchanges where Canopy trades to permit the acquisition of US cannabis assets, which include Acreage Holdings, Wana, and Jetty. Those assets will be placed into Canopy USA, the results of which will be deconsolidated from Canopy Growth, while Canopy will also hold a non-controlling interest in the entity.

READ: Canopy Growth Surges And Falls On Germany Cannabis Legalization

The financial engineering is expected to fast track Canopy’s entry into the US cannabis market, which the company says could be as big as US$50 billion by 2026, while establishing a brand “powerhouse.” At the same time, the merger of the three separate US entities is expected to result in cost synergies that reduce operating costs, while also cutting public reporting costs currently being borne by Acreage.

As part of the launch of Canopy USA, the next step is for Constellation Brands to convert its holdings in Canopy into exchangeable shares, while nominees to Canopy’s board will resign. Constellation however will remain the largest shareholder of Canopy.

Once the actions will Constellation are complete, Canopy USA will close on the acquisition of Wana and Jetty, which is slated to occur in Canopy’s second quarter of fiscal year 2025, which translates to the end of September 2024. The acquisition of Acreage meanwhile is expected to occur by the end of fiscal year 2025, which puts that timeline as by the end of March 31, 2025.

The endless hoops that Canopy has gone through to enable the acquisition of the US assets are expected to end once the Nasdaq or NYSE permit the listing of companies that consolidate financial statements of cannabis operations in the US on its exchanges.

“With this successful shareholder vote complete, our Canopy USA strategy is advancing and is poised to make Canopy the first and only U.S. listed cannabis company offering shareholders unique exposure to the rapid growth of the U.S. cannabis market. Canopy USA can now move quickly to acquire its U.S. assets in Wana, Jetty, and Acreage, and we expect Canopy Growth to begin highlighting Canopy USA’s financial performance to our shareholders later this year,” commented David Klein, CEO of Canopy Growth.

Canopy Growth last traded at $10.70 on the TSX.


Information for this briefing was found via the sources 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.

Video Articles

Fortune Bay: The Potential Billion Dollar Project

Japan Gold Enters New Chapter as Barrick Alliance Concludes – John Proust

Barrick Mining’s “Company Defining [Gold] Discovery”

Recommended

Nord Precious Metals Produces High Grade Silver Concentrate From Tailings

ESGold Secures $9 Million In Non-Dilutive Funding From Ocean Partners

Related News

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

Canopy Growth: Canaccord Lowers Price Target After “Uninspiring Quarter”

Last week, Canopy Growth Corp (TSX: WEED) (NASDAQ: CGC) reported their first fiscal quarter of...

Thursday, August 12, 2021, 10:54:00 AM

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

Quarterly Affirmation with Canopy Growth Corp

Every three months, Canopy Growth Corp (TSX: WEED) (NYSE: CGC) posts another net loss, fails...

Thursday, June 4, 2020, 04:00:00 PM

Cantor Releases Industry Report For Cannabis, Aphria Remains Top Pick

Recently, Cantor Fitzgerald released their monthly review of Hifyre data for the four weeks ending...

Sunday, October 4, 2020, 01:57:00 PM