Canopy Growth and Acreage Holdings Remind Shareholders Why They Should Vote YES

Canopy Growth (TSX: WEED) (NYSE: CGC) and Acreage Holdings (CSE: ACRG.U) (OTCQX: ACRGF) issued a joint press release this morning encouraging shareholders to vote yes on Canopy’s proposed acquisition of Acreage.

The companies reminded investors to vote in favour of the deal before the deadline on June 17, 2019, at 10:00 am EST.

Both Canopy and Acreage’s board of directors unanimously support this deal and believe it will create substantial value for both sides and their shareholders.

As per the terms of this deal, Acreage shareholders will receive a large upfront cash payment equal to roughly $2.51 – $2.63 USD per subordinate voting share. Shareholders of other classes of Acreage Shares will be entitled to an amount determined on an as-converted to subordinate voting share basis.

Canopy stated that their shareholders will benefit from this merger as the deal provides a clear path to enter the U.S. cannabis market and introduce the company’s wide range of products to consumers in the United States once the federal ban is eventually lifted.

Key reasons why both companies want their shareholders to vote in favour of the deal:

Canopy’s leading brands, technology, and expert knowledge is expected to give Acreage a significant advantage in the U.S. marketplace and put the combined entity in a position to grow substantially.
Acreage shareholders will be in a position to take advantage of their affiliation with Canopy Growth and will likely benefit from a reduced cost of capital. This will, in turn, allow Acreage to accelerate its growth strategy.
Canopy Growth shareholders will be rewarded with immediate access to the U.S. market and the ability to tap into Acreage’s vast infrastructure across multiple U.S. States.
Rather than compete in the U.S. market against one another the companies believe they have the opportunity to create significant shareholder value as one entity.

Source: Shutterstock

For more information on the proposed transaction and to access an electronic copy of the information circulars please use the links below.

Canopy Growth shareholders that require assistance voting or have additional questions should contact:

Kingsdale Advisors
Phone: 1-866-581-1392 toll-free (North America) or 1-416-867-2272 (collect calls outside North America)
Email: contactus@kingsdaleadvisors.com.

Acreage shareholders that require assistance voting or have additional questions should contact:

Kingsdale Advisors
Phone: 1-866-229-8651 toll-free (North America) or 1-416-867-2272 (collect calls outside North America)
Email: contactus@kingsdaleadvisors.com.

About Canopy Growth

Canopy Growth (TSX: WEED) (NYSE: CGC) is a world-leading diversified cannabis, hemp, and cannabis device company, offering distinct brands and curated cannabis varieties in dried, oil and Softgel capsule forms, as well as medical devices through Canopy Growth’s subsidiary, Storz & Bickel GMbH & Co. KG. From product and process innovation to market execution, Canopy Growth is driven by a passion for leadership and a commitment to building a world-class cannabis company one product, site and country at a time. Canopy Growth has operations in over a dozen countries across five continents.

About Acreage

Headquartered in New York City, Acreage is the largest vertically integrated, multi-state owner of cannabis licenses and assets in the U.S. with respect to the number of states with cannabis-related licenses, according to publicly available information. Acreage owns licenses to operate or has management services or consulting agreements in place with license holders to assist in operations in 20 states (including pending acquisitions) with a population of approximately 180 million Americans, and an estimated 2022 total addressable market of more than $17 billion in legal cannabis sales, according to ArcView Market Research. Acreage is dedicated to building and scaling operations to create a seamless, consumer-focused branded cannabis experience. Acreage’s national retail store brand, The Botanist, debuted in 2018.

Read the full joint press release