Canada’s Canopy Growth is close to a deal to acquire New York-based marijuana multistate operator Acreage Holdings, multiple sources, including CNBC and Bloomberg, reported Wednesday.
If true, it would be the first cross-border deal involving a Canadian marijuana licensed company buying a non-hemp U.S. multistate operator.
It isn’t clear currently how the Canadian company could acquire a U.S.-based firm and still maintain its New York Stock Exchange (NYSE) and/or Toronto Stock Exchange listings because of the complex trading rules around cannabis.
For example, the TSX prohibits companies listed on its exchange from having cannabis assets in countries where marijuana is federally illegal, such as the United States.
Canopy, based in Smiths Falls, Ontario, trades on both the New York Stock Exchange (CGC) and the Toronto Stock Exchange (WEED).
Acreage trades as ACRG.U on the Canadian Securities Exchange, where the TSX rule does not apply.
Acreage was trading $2 higher at the end of trading April 17 compared with the previous close.
Neither Acreage nor Canopy could be reached immediately for comment.
Marijuana Business Daily will be covering this deal as it unfolds.
Read our ongoing coverage of Canopy Growth and Acreage Holdings.