But it’s dependant on marijuana being legalized in America
The US$3.4-billion deal struck by Canadian pot producer Canopy Growth Corp. for an American cannabis company could inspire some copycats, even if it first requires that the production and sale of cannabis becomes federally legal in the United States.
The deal highlights the extent to which Canadian cannabis companies covet the much larger American market, and how imaginative they’ve become in positioning themselves for the eventual loosening of U.S. cannabis laws. “Our right to acquire Acreage secures our entrance strategy into the United States as soon as a federally-permissible pathway exists,” Linton said.Acreage, in addition to its presence in 20 states , is also known for having former Canadian Prime Minister Brian Mulroney and former Speaker of the U.S. House of Representatives John Boehner on its board of directors.
Eric Foster, a partner at law firm Dentons, said the deal could be a “game-changer” for the industry, provided it gets the OK from regulators. There have been other transactions structured with a similar “triggering event,” but not on this size or scale, he said. Murphy said in a phone interview that passage of that legislation could even happen within the next 12 months.
Once approvals from the Supreme Court of British Columbia and shareholders are received, Canopy would pay Acreage shareholders US$300 million in cash. If the U.S. federal government legalizes cannabis, Acreage shares would be automatically exchanged for Canopy shares, at a ratio of one-to-0.5818.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Canopy to buy Acreage in US$3.4B deal, gaining major U.S. footprint - BNN BloombergCanopy Growth Corp. plans to acquire U.S. marijuana operator Acreage Holdings Inc. in a blockbuster deal that would create a North American cannabis powerhouse - but only when it becomes legal to do so.
Read more »
$3.4 billion deal to buy Acreage gives Canopy Growth gateway to massive American cannabis market$3.4 billion deal to buy Acreage gives Canopy gateway to massive U.S. cannabis market
Read more »
$3.4 billion deal to buy Acreage gives Canopy Growth gateway to massive U.S. cannabis market$3.4 billion deal to buy Acreage gives Canopy gateway to massive U.S. cannabis market
Read more »
Canopy Growth to buy U.S. pot company Acreage in $3.4 billion dealNew York-based Acreage boasts former U.S. House Speaker John Boehner and former Canadian Prime Minister Brian Mulroney as directors
Read more »
Canopy to buy Acreage in US$3.4B deal, gaining major U.S. footprint - BNN BloombergCanopy Growth Corp. plans to acquire U.S. marijuana operator Acreage Holdings Inc. in a blockbuster deal that would create a North American cannabis powerhouse - but only when it becomes legal to do so.
Read more »
Canada’s Canopy Growth nears deal to buy U.S.-based pot company Acreage Holdings: sourceCanadian cannabis companies have been looking for ways to get into the U.S. market, where cannabis remains federally illegal
Read more »
Canopy pays $300-million to secure right to buy Acreage HoldingsAn all-share acquisition, which the companies value at $3.4-billion, will be triggered upon changes to U.S. federal law
Read more »
Evening Update: What the redacted Mueller report says; Canopy Growth buys rights to acquire U.S. cannabis operatorAlso: Suspects in murder of Rwandan dissident ‘directly linked’ to Kagame’s government, police say
Read more »
Saudi Aramco buys stake in South Korean refiner unit for $1.2-billionHyundai Heavy Industries said that it had signed a sales agreement with Saudi Aramco that included an option for Aramco to buy an additional 2.9-per-cent stake in Hyundai Oilbank
Read more »