Canopy Growth, a publicly traded cannabis company, announced they have entered into a definitive arrangement agreement that grants them the right to acquire 100% of the shares of Acreage Holdings, a publicly traded American cannabis company, with a requirement to do so at such time as cannabis production and sales become federally legal in the United States.
The total consideration payable pursuant to the transaction would be valued at approximately US$3.4 billion.
“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 Bruce Linton of Canopy Growth.
Acreage Holding is a leading multi-state cannabis operator in the U.S. It owns or has managed services agreements in place for cannabis-related licenses across 20 states (giving it the right to develop), including 87 dispensaries and 22 cultivation and processing sites.