Canopy growth up 9% before commercialization after takeover of US cannabis operator – Acreage Holdings, Inc. (OTCMKTS: ACRGF)



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Canopy Growth (NYSE: CGC) has agreed to acquire Acreage Holdings (OTCQX: ACRGF) in the amount of $ 300 million in cash plus 0.5818 common shares of CGC for each Subordinate Voting Share of Acreage. represents a total transaction value of approximately $ 3.4 billion.

Shareholders of Acreage, if they vote in favor of the combination, will hold approximately 12.1% of CGC after the transaction is completed on a pro forma basis, which could increase to 16.6% if certain acquisitions are completed before the federal legalization of cannabis in Germany. the United States ("the trigger event").

A mere majority of CGC shareholders must also bless the deal.

The parties will sign a licensing agreement granting Acreage access to CGC's line of brands, including Tweed and Tokyo Smoke, as well as other intellectual property rights.

Acreage has or has service contracts for cannabis licenses in 20 states, including 87 dispensaries and 22 culture and processing sites.

Constellation Brands (STZ + 2.2%), owner of a 36.6% interest in CGC, is increasing its average volume. He also has mandates that could make him the majority owner.

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