Shareholders approve planned cannabis merger of Canopy Growth and Acreage

Shareholders at both Acreage Holdings  (CSE: ACRG.U) and Canopy Growth (NYSE: CGC; TSX: WEED) voted in favor of the planned $3.4 billion merger between two of the biggest cannabis companies in North America.

Canopy said in a news release that 99.05% of its voting shareholders approved the transaction.

“Completion of the transaction is intended to position us to efficiently and effectively enter the U.S. cannabis market once federally permissible,” Bruce Linton, chairman and co-CEO of Canopy Growth, said in the announcement.

The eventual deal is dependent on the federal legalization of cannabis in the United States, the so-called “triggering event.”

For more analysis of the implications of today’s shareholder approvals, sign up for a premium membership to Investor Intelligence.

One comment on “Shareholders approve planned cannabis merger of Canopy Growth and Acreage
  1. Maxcatski on

    Wow, 3.4 BILLION dollars. Let’s say you make a dollar a gram profit. That’s 34 billion grams to break even on this deal.

    That’s 34 million kilograms of pot, folks. That’s enough pot to bury every cannabis consumer in North America under a layer of pot two feet deep (I am making up the last bit – but you get the idea.)

    Valuations in the cannabis market are ridiculous. A day of reckoning is coming and a lot of investor money will go up in smoke! In the meantime, I enjoy producing more cannabis than I can consume for less than fifty cents a gram. Industry needs to catch up.

    Reply

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