Wana Brands, a Colorado-based cannabis edibles firm, is Canopy Growth’s latest U.S. acquisition hinging on federal pot law reforms.
Canopy Growth’s (WEED.TO)(CGC) latest acquisition hinging on pot becoming federally legal in the United States is a Colorado-based cannabis edibles brand that claims to lead the category by market share across North America.
Smiths Falls, Ont.-based Canopy announced a deal to acquire privately-held Wana Brands on Thursday. The company says the transaction is similar in structure to its planned takeover of New York-based multi-state operator Acreage Holdings (ACRHF), a landmark deal when it was announced in 2019 that required federally permissible pot sales in order to be fully consummated.
Under the terms of the deal, Canopy has separate call option agreements with three Wana owner entities to acquire 100 per cent of the company. Canopy says it will make an upfront cash payment of US$297.5 million. Canopy did not disclose the total value of the deal, which it says can be satisfied with cash, shares or a combination of both at its discretion.
“The right to acquire Wana secures another major, direct pathway into the U.S. THC market upon federal permissibility, and in Canada we’ll be adding the top-ranked cannabinoid gummies to our industry-leading house