What do Acreage’s moves to leverage international brand rights mean for Canopy & Constellation?

Acreage Holdings announced a complex financing on Feb. 7 in which the New York company is raising a net $79 million, with plans for at least $65 million more.

The raise could give CEO Kevin Murphy and a lending group leverage over Canada’s Canopy Growth – and, ultimately, its largest shareholder, alcohol giant Constellation Brands – if the United States federally legalizes marijuana and Acreage does not repay a loan.

Shares outstanding have increased at least 7.1 million through the deal and could potentially increase by another 22.3 million.

Acreage is raising much of the capital ($50 million) by creatively carving out and borrowing against an existing asset that doesn’t really exist yet, classified as “non-U.S. intellectual property.”

In other words, this is the rights to sell Acreage brands outside the United States, since the multistate operator lists no actual international assets in its filings.

Will Canopy have to pay more for Acreage Brands?

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