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Canopy Growth Corp (NYSE: CGC) The planned takeover offers an immediate and significant advantage in the competitive market for Acreage Holdings Inc (OTCMKTS: ACRGF). In accordance with the previously agreed acquisition plan, the two companies submitted the management circulars under the agreement approved by the court under the Business Corporations Act.
The transaction is subject to waiver of the amendments to the US federal law authorizing the distribution, cultivation and possession of marijuana. The transaction is also subject to approval by the Toronto Stock Exchange and the New York Stock Exchange. It is also subject to shareholder approval at a meeting scheduled for June 19, 2019.
Cash consideration
As a result of the transaction, Acreage shareholders will receive an up-front amount of money for each share up to $ 2.63. Each piece of acreage will be converted to 0.5818 shares of Canopy. This is a 40% premium on the 30 day volume weighted average price of the CSE Subordinate Voting Shares of April 17, 2019. Acreage shareholders will also benefit from its ability to cope with the established growth with reduced capital. Canopy shareholders will benefit from turnkey and accelerated access to the cannabis market in the United States. This, coupled with Canopy's expertise, will propel growth.
Board approval
The board of directors of both companies unanimously supported the transaction. The management circulars for Canopy and Acreage describe the benefits and risks of the transaction for shareholders. Shareholders will receive circulars by mail.
If the transaction is implemented, the combined entity will benefit from the enhanced product line, distribution networks and complementary badets. Acreage will have access to Canopy's trademarks, operational expertise and intellectual property.
Increase in canopy stocks
The stock of Canopy jumped on May 23, 2019, following the announcement of the acquisition of a It works, a skin care company based in the United Kingdom. The transaction is valued at $ 54 million in cash. The product line of This Works includes sleep aid products and skincare products. This is a crucial deal for Canopy as it leverages CBD strategy and hemp for an integrated manufacturer / marketing platform.
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