Cannabis company Canopy completes acquisition of US operator Acreage

Canadian cannabis operator Canopy Growth Corp. has completed its acquisition of New York-headquartered Acreage Holdings through its American holding company.

Smiths Falls, Ontario-based Canopy, which trades on the Nasdaq stock exchange as CGC, issued about 5.89 million shares valued at roughly $21.2 million to former Acreage shareholders, according to a Monday news release.

In addition to the Acreage deal, the Canadian operator’s U.S. holding company, Canopy USA, now has completed:

• 100% of its acquisition of Wana Wellness, The CIMA Group Mountain High Products (collectively known as Wana, a Colorado-headquartered edibles manufacturer). The Wana deal was valued at $297.5 million when it was announced in 2021.
• Roughly 77% of its purchase of Jetty Extracts, a California-based extraction brand and vape technology company also known as Lemurian. The Jetty deal was valued at a minimum of $69 million when it was reached in 2022.

“Completing the acquisition of Acreage marks the final step in establishing Canopy USA as a unified platform, which we believe offers significant upside as the Canopy USA portfolio of brands can now capitalize on the rapidly expanding U.S. cannabis market, independent of the need for federal legalization,” David Klein, CEO of Canopy Growth and a member of the board of managers of Canopy USA, said in a statement.

“With a vertically integrated presence across key U.S. states in the Midwest and Northeast, as well as licensing agreements which support asset-light operations in state-legal markets nationally, Canopy USA is well positioned to demonstrate efficient growth ahead.”

By entering the U.S. market, which MJBiz Factbook projections have reaching as high as $58 billion in 2030, Canopy expects recoup its investments by capturing market share.

The company’s portfolio now includes some of the most recognized U.S. marijuana brands, a move Canopy believes positions it to capitalize on fast-growing categories such as edibles, vapes and flower, according to the release.

The company said it expects to benefit from revenue and cost synergies by “leveraging the brands, routes to market and operations of the full U.S. cannabis ecosystem while eliminating redundancies.”

Canopy’s shares also trade  on the Toronto Stock Exchange, as WEED.