Smith Falls, Ontario-based Canopy Growth has announced that they have entered into a definitive purchase agreement granting them the right to acquire 100 percent of Acreage Holdings shares as soon as cannabis becomes federally legal in the United States.
Canopy was founded in April of 2014 and was the first cannabis company in North America to be listed on the Toronto Stock Exchange.
“Our right to acquire Acreage secures our entrance strategy into the United States as soon as a federally permissible pathway exists,” said Canopy Chairman and co-CEO Bruce Linton. “By combining Acreage’s management team, licenses and assets with Canopy Growth’s intellectual property and brands, there will be tremendous value creation for both companies’ shareholders.”
The two companies will be entering into a licensing agreement that will give Acreage access to Canopy Growth’s brands and other intellectual property.
Acreage Holdings Chairman CEO, Kevin Murphy says that the transaction will enable the companies to innovate, develop, and distribute quality cannabis brands across the United States.
“From the first day we created our company, providing exceptional customer care and delivering shareholder value have been our top priorities,” said Murphy. “This transaction will help accomplish both.”
The combined infrastructure that will be created through the purchase agreement between Canopy and Acreage is expected to create a “global cannabis powerhouse,” with a leading role in legal marijuana markets in the United States, Canada, Latin America, Europe, and Asia.
