[ad_1]
Canadian pottery company Canopy Growth Corp.
GSC + 5.64%
CANNABIS, + 5.89%
Monday announced that it has agreed to acquire the assets of Colorado-based hemp research firm Ebbu Inc. for CAD 25 million plus 6.2 million shares. The agreement "will complement and accelerate the core vertical activities of several groups operating under the Canopy Growth group of companies," Canopy said in a statement. Canopy will take charge of Ebbu's intellectual property and research and development for its cannabis breeding program that is rich in hemp and THC and its cannabis infused beverage capacity. The company plans to reduce the production costs of CBD by using Ebbu's intellectual property. The news comes just two days before Canada fully legalizes cannabis on October 17th. The agreement is expected to be completed in November, subject to regulatory approval by the TSE and NYSE. Shares increased 2.8% pre-market and rose 110.5% in 2018, while the S & P 500
SPX, + 1.42%
gained 3.5%.
Have the latest news sent to your inbox. Subscribe to free e-mails from the MarketWatch newsletter. Register here.
Source link
