Canopy Growth is looking to dominate the cannabis gummies market with its latest option-based deal hingeing on pot becoming federally legal in the United States. The Smiths Falls, Ont.-based company announced a deal on Thursday to acquire privately-held Wana Brands, a Colorado-based cannabis edibles brand that claims to lead the category by market share across North America. Canopy says the transaction is similar in structure to its planned takeover of New York-based multi-state operator Acreage Holdings (ACRHF), a landmark deal when it was announced in 2019 that required federally permissible pot sales in order to be fully consummated. Under the terms of the deal, Canopy has separate call option agreements with three Wana owner entities to acquire 100 per cent of the company. Canopy says it will make an upfront cash payment of US$297.5 million. When the rights to acquire each Wana entity are exercised, Canopy says it will make a payment equal to 15 per of the fair market value with cash, shares, or a combination of both, at its discretion.

420 Intel – Marijuana Industry News, 10/13/2021 20:00:00

Open article: