Canopy to buy Acreage in US$3.4B deal, gaining major U.S. footprint
Canopy Growth Corp. plans to acquire U.S. marijuana operator Acreage Holdings Inc. in a blockbuster deal that would create a North American cannabis powerhouse - but only when it becomes legal to do so.
Canopy will also provide Acreage with the ability to market its various brands including Tweed and Tokyo Smoke along with other intellectual property. Once Canopy is allowed to acquire Acreage, the Smiths Falls, Ont.-based company would have access to at least 20 U.S. states - a market currently valued around US$17 billion - where Acreage operates to sell its range of dried cannabis products as well as pot-infused edibles and extractables such as its upcoming beverage line.
He added the deal's structure has been vetted by U.S. and Canadian regulators and stock exchanges where"it would not step on any lines that would cause them to enforce anything." Acreage reported revenue of US$21.1 million in its fiscal 2018 while posting a net loss of US$219.7 million. In its fiscal 2017, Acreage generated US$7.7 million in sales with a net loss of US$7.6 million. With 87 dispensaries - and an additional 30 expected by the end of the year - in 20 states, it also has one of the widest geographic footprints among all U.S. cannabis operators.
"All we want to do is leverage off of the enormous stride that Canopy has achieved with its partner in Constellation," Murphy said.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Canopy Growth to buy U.S. pot company Acreage in $3.4 billion dealNew York-based Acreage boasts former U.S. House Speaker John Boehner and former Canadian Prime Minister Brian Mulroney as directors
Read more »
Canada’s Canopy Growth nears deal to buy U.S.-based pot company Acreage Holdings: sourceCanadian cannabis companies have been looking for ways to get into the U.S. market, where cannabis remains federally illegal
Read more »
Canopy Growth CEO expects to hit $1B in revenue for fiscal year 2020Canopy Growth Corp.'s co-chief executive says he is expecting a 'growth quarter' ahead and foresees the cannabis company will generate $1 billion in revenue during its next financial year.
Read more »
Canopy Growth is about to become the first pot stock to join S&P/TSX 60 indexReplacing Goldcorp on index of Canada’s large-cap stocks
Read more »
Canopy becomes first pot stock to join S&P/TSX 60 indexCanopy Growth Corp. will soon join the S&P/TSX 60, making it the first cannabis company to be added to the index of Canada's large-cap stocks.
Read more »
Canada’s Canopy Growth nears deal to buy U.S.-based pot company Acreage Holdings: sourceCanadian cannabis companies have been looking for ways to get into the U.S. market, where cannabis remains federally illegal
Read more »
Canopy Growth to buy U.S. pot company Acreage in $3.4 billion dealNew York-based Acreage boasts former U.S. House Speaker John Boehner and former Canadian Prime Minister Brian Mulroney as directors
Read more »
Jack Ma draws controversy by lauding overtime work culture - BNN BloombergTo survive at Alibaba Group Holding Ltd. you need to work 12 hours a day, six days a week. That’s what billionaire Jack Ma demands of his staff at China’s biggest e-commerce platform.
Read more »
U.S. industrials’ gains put to test as earnings ramp upIndustrials’ gains put to test as earnings ramp up GlobeInvestor
Read more »
Exxon and other oil giants say the crude they bought from the U.S. government’s reserves was tainted with poisonous gasIn some cases, hydrogen sulfide levels were 250 times higher than government safety standards allow
Read more »