Acquisition would mark first major cross-border pot deal
Canopy Growth Corp. is nearing a deal to buy Acreage Holdings Inc. in what would be the first major cross-border cannabis merger, according to people familiar with the matter.
The purchase could be announced as soon as this week, said the people, who asked not to be identified because the discussions are private. Talks are ongoing and may still fall apart, the people said. Canopy’s shares added 9 percent in post-market trading in New York. Acreage gained 15 percent in Toronto before the market closed.
The deal would be a major milestone for Canopy, the world’s largest cannabis company, and New York-based Acreage, which boasts former U.S. House Speaker John Boehner and former Canadian Prime Minister Brian Mulroney as directors.
Acreage went public on the Canadian Securities Exchange in November and is now among the largest U.S.-based pot firms. Acreage has cultivation, processing and dispensing licenses or agreements with holders in 19 states. It also manages a chain of retail stores called The Botanist.
Representatives for Smiths Falls, Ontario-based Canopy and Acreage declined to comment.
While Canada has been at the center of investment banking for cannabis companies since the drug was legalized there in October, the legal market for marijuana is larger in the U.S., where sales were north of $10 billion last year. [Read More @ Bloomberg]