Canopy Growth agrees to buy Acreage Holdings in $3.4B deal
Canopy Growth has agreed to roll up one of the biggest US marijuana growers in a $3.4 billion deal.
However, the companies said Thursday that Canopy’s acquisition of NY-based Acreage Holdings is contingent upon cannabis production and sales becoming legal at a federal level.
Canopy hopes to navigate regulatory pitfalls with the influential people Acreage has on its board, including John Boehner, the former speaker of the House of Representatives and William Weld, the former governor of Massachusetts and a Republican presidential candidate.
In the deal, Canopy will pay Acreage roughly $300 million in cash up front. If federal legalization happens, Canopy said it would pay Acreage shareholders 0.5818 share in Canopy Growth for each Acreage share held. The companies valued the entire transaction at about $3.4 billion.
Acreage’s stock trading over the counter rose nearly 1 percent Thursday, to $22.51.
Canopy shares jumped 4 percent Thursday. The stock has gained 72 percent so far this year.
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