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Canopy Continues To Expand, Amends $37.5M Deal Agreement With Acreage

Anthony Noto

Canopy Growth Corp. (TSX: WEED) (NYSE: CGC) and Acreage Holdings Inc. (OTC: ACRGF) have tweaked their previously announced capital agreement meant to fund hemp operations.

The amended arrangement provides for up-front cash payment to Acreage shareholders and certain convertible security holders in the amount of $37.5 million.

The share deal is comprised of up to 12.4 million floating shares and up to 20.3 million fixed shares.

The original arrangement was announced on April 18, 2019. Canopy had agreed to acquire all of the issued and outstanding securities of Acreage.

"The United States is going to be a core market for Canopy Growth" David Klein, Chief Executive Officer of Canopy Growth, in a prepared statement.

Klein added that the new agreement "solidifies" the company's path forward with Acreage.

"I am excited to bring our relationship with Acreage back to centre stage in our U.S. strategy and look forward to a time when the laws in the United States permit us to finalize this transaction as we march toward bringing our exciting beverage products to the US," he added.

Courtesy photo

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