Canada’s leading marijuana producer, Canopy Growth (TSX:WEED), has announced a $3.4-billion U.S. deal to acquire Acreage Holdings after cannabis becomes legal nationwide in the United States.
The deal, which was finalized Thursday morning in New York City, grants Canopy Growth the right to buy all of Acreage’s stock following nationwide legalization south of the border. The two companies have agreed to operate independently until then. However, Canopy Growth has granted Acreage Holdings access to its vault of brands, including its most popular recreational strain of drug known as "Tweed."
"Today we announce a complex transaction with a simple objective. Our right to acquire Acreage secures our entrance strategy into the United States as soon as a federally-permissible pathway exists," said Canopy Growth Chief Executive Officer Bruce Linton in a news release.
"By combining Acreage’s management team, licenses and assets with Canopy Growth’s intellectual property and brands, there will be tremendous value creation for both companies’ shareholders."
Although domiciled in British Columbia, Acreage Holdings has a diverse portfolio of cannabis cultivation, processing and dispensing operations in the United States. Members of Acreage Holdings' Board of Directors include former Republican Speaker of the United States House of Representatives John Boehner, former Republican Governor of Massachusetts Bill Weld, former IBM Chief Financial Officer Douglas Maine, and former Conservative Prime Minister of Canada Brian Mulroney.
