Canopy Growth (TSX: WEED) (NYSE: CGC) announced last night that the company has received the thumbs up from its shareholders in regards to their planned acquisition of Acreage Holdings (CSE: ACRG.U) (OTCQX: ACRGF). Canopy’s shareholders voted overwhelmingly in favour of the deal.
The company’s shareholders approved the issuance of common shares and amendments to Canopy warrants relating to the proposed acquisition. The shareholder resolution was approved by roughly 99.05% of the votes cast. Investors can view the voting results here.
The shareholders of Acreage Holdings also approved the deal at their own special meeting held at the same time as Canopy.
“On behalf of Canopy Growth, I thank the shareholders of both companies for their vote of confidence in this historic transaction,” said Bruce Linton, Chairman & Co-CEO, Canopy Growth. “Completion of the Transaction is intended to position us to efficiently and effectively enter the US cannabis market once federally permissible. Alongside our international market strategies and US Hemp strategy, we believe the acquisition of Acreage will be a key step in bolstering our position as a truly global company.”
Initial execution of the Canopy/Acreage deal is subject to the approval of the Supreme Court of British Columbia as well as other closing conditions. The transaction is expected to be implemented on or about June 27, 2019.
Full closing of this deal is still contingent on the United States officially lifting their long-standing Federal cannabis ban. Changes to the U.S. laws allowing for the general cultivation, distribution, and possession of cannabis is necessary for the acquisition to be officially completed.
Full details on the payment by Canopy to Acreage will be available in a press release to follow.
Updates on Canopy Growth’s U.S. Hemp & CBD Operations:
- Canopy continues to advance its United States vision.
- Owned and contracted hemp operations are now in 7 states.
- California, Colorado, New York, Pennsylvania, North Carolina, Oregon, and Kentucky.
- Currently in the process of planting hemp.
- A mixture of high-fiber/high-CBD genetics and varieties are being used.
- Seeking to supply raw materials for large-scale industrial hemp production of textiles, proteins, and bioplastics.
- At full capacity Canopy’s hemp operations in conjunction with U.S. farmers will cover more than 4,000 acres.
- 4,000 acres is equal to roughly 3,268 American football fields or 11,072 ice hockey rinks.
- Almost half of Canopy’s hemp farming operation will be in the state of New York.
- New York will include 1,000 acres of high-CBD hemp as well as 1,000 acres of high-fiber hemp.
- To complement their farming operations Canopy is looking to build its own industrial-scale hemp processing and manufacturing plants.
- The Acreage assets could become a large part of Canopy’s long term U.S. expansion strategy if and when the deal is completed.
- Canopy’s Colorado-based hemp research subsidiary ebbu will allow the company to provide an unmatched level of product quality, regulatory oversight, reliability and scientific accuracy to the United States hemp and CBD markets.
- Canopy’s huge cash position will give them an edge in their quest to expand through the United States and internationally.
Investors looking for additional details on Canopy Growth’s planned acquisition of Acreage Holdings are encouraged to read the information here.
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.
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