Seekerstime – Canopy Growth to buy Acreage holdings once Marijuana is federally legal

Marijuana stocks dipped in Canada, including Canopy Growth in the last year. However, Acreage Holdings stock jumped. So, Canopy Growth reworked the deal to buy Acreage Acreage Holdings.  The Canadian cannabis producer Canopy Growth reworked its deal to buy U.S. peer Acreage Holdings.  It is a move that brought the departure of Acreage’s CEO and lowered the deal’s price and other financial commitments.

Canopy Growth is looking forward to buying Acreage once pot is federally legalized in the U.S. The legalization will force North American’s legal marijuana industry to cut costs and shrink its footprint. According to the tough agreement, the CEO of Acreage Kevin Murphy is resigning from that position. However, he will stay on the company’s board.

Bill Van Faasen, a director of Acreage and a former CEO of Blue Cross Blue Shield of Massachusetts, will become Acreage’s interim CEO until the company lands a replacement. One of the employees at Acreage said that Murphy recognized the company needed someone with “a different, more consumer goods-focused skill set.”.

According to the deal last year, Canopy had to buy 100% of Acreage once Marijuana was legalized in the U.S. But according to the newly reworked deal Canopy Growth will only have to buy 70% of Acreage once marijuana is legalized in the United States.

However, since the coronavirus, Acreage has suffered. And the industry has changed. Acreage said it wouldn’t know the actual price of the acquisition until cannabis was legalized. But the company representative said that as the world, economy, and the markets have changed, the companies had to amend their arrangement.

TribuneByte – Canopy Growth is Buying the Floating Shares of Acreage Holdings Before Marijuana is Federally Legal in the US

Canadian cannabis firm, Canopy Growth, has struck a new deal with Acreage Holdings to buy floating shares of the latter. Last April, a deal between the two firms stated the 100% sale of shares of Acreage Holdings.

But the deal has been revised under which Canopy Growth would buy 70% of Acreage Holdings once the US legalized cannabis. It is a great opportunity for Canopy Growth to explore the US cannabis market once the federal government legalized the sales and production of cannabis.

Under the new share agreement, Acreage will introduce two new share classes, a “fixed” share and a “floating” share. The percentage of fixed shares is 70% of the original shares and the remaining are the floating shares.

The exchange rate of fixed Acreage shares is reduced from 0.5818 to 0.3048 shares of Canopy. Canopy Growth is eligible to buy the floating shares at a price of at least $6.41and it is buying the shares before the legalization of cannabis in the US market.

A one-time payment of $37.5 million is finalized by Canopy shareholders and the firm will also loan around $100 million to a subsidiary of Acreage. Canaccord analyst Matt Bottomley has expressed that a combined implied minimum deal price of ACRG is downgraded from US$ 9.49 to $5.49 per share.

He said that the floating shares allow the existing ACRG shareholders to participate in a value decided by the company on a temporary basis. Canopy Growth has also announced to launch THC-infused beverages in the US in 2021 by partnering with New York-based cannabis firm, Acreage Holdings

Canopy has declared that it would announce weed carbonated drinks and Houseplant sparkling waters with a presence of 2-2.5 mg of THC in them. Moreover, new brands will also be introduced for adult people.

Tricity Daily – Canadian Cannabis Firm, Canopy Growth, to Enter the US Cannabis Market by Acquiring Shares of Acreage Holdings

Canadian Cannabis firm, Canopy Growth, has sealed a deal with the New York-based cannabis company, Acreage Holdings to buy shares in it. Although the deal was struck last April, now it has been again revised between the two firms.

It has been decided that Canopy Growth would not buy 100% shares of Acreage Holdings but it would restrict itself to only 70% share in the US cannabis firm. This will mark the entry of Canopy Growth in the US marijuana market once the US federal government legalized the use of cannabis.

Following the new deal between the two companies, Acreage CEO Kevin Murphy has decided to resign from his position. It is because two new share classes namely, a fixed share and a floating share, have been created by Acreage in the new share agreement.

Due to the challenging economic situation, the price per share is reduced from the last year’s $9.49 to $5.49. The price for a floating share will be at least $6.41 and it has already started buying floating shares of Acreage. So buy now before Marijuana is Federally legal.

In addition to buying Acreage, the Canadian cannabis firm has also decided to introduce THC-infused cannabis drinks in the US in 2021 by partnering with NY-based cannabis firm, Acreage Holdings. Canopy’s Tweed carbonated drinks and Houseplant sparkling waters would contain 2 mg to 2.5 mg of THC.

Moreover, new brands for adults will also be made available in the US. The company hopes the US will legalize cannabis by 2022. The new agreement is only justified if the US legalized cannabis within the legalized window of 10 years.

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