Canopy Growth Corp. is not outright acquiring Acreage Holdings Inc., as reports said Wednesday, but it is preparing to pay billions for the rights to buy the U.S.-based pot company.
A source familiar with the negotiations confirmed Wednesday afternoon that a Canopy Growth CGC, +2.81% WEED, +2.81% deal with Acreage ACRGF, +9.14% was “98% done,” though the final price was still being worked out. Acreage had a market cap of $921.5 million as of Wednesday’s close, according to FactSet, but the deal will be worth “several billions” in Canadian dollars, the source said.
If Canopy Growth were to outright acquire Acreage, though, it would run afoul of rules for the Toronto Stock Exchange, where its shares are listed. The TSX does not allow companies to own stakes in businesses that run illegal operations, which Acreage technically does because marijuana is still federally illegal in the U.S. Canopy would also have to give up its U.S.
Instead, Canopy Growth will purchase the rights to buy Acreage when marijuana becomes federally legal in the U.S. at an agreed-upon price, according to the source. Many cannabis companies in Canada have purchased warrants in companies with U.S. operations, and Canopy already has some, including in Slang Worldwide Inc. SLGWF, +1.76% and others owned by its Canopy Rivers Inc. RIV, +10.05% investment subsidiary, which is listed on the TSX Venture exchange.
Canopy’s U.S.-listed shares jumped more than 10% in after-hours trading after initial reports of the deal were published Wednesday afternoon, though those gains later quieted down a bit to about 8%. The stock closed 2.8% higher Wednesday, as the ETFMG Alternative Harvest ETF MJ, -0.15% lost 0.2% and the Horizons Marijuana Life Sciences Index ETF HMMJ, +1.03% gained 1%.
Source: Law Daily Report (lawdailyreport.net)
Everyone scared about $TLRY and weeds stocks up and down. They can't build the trust
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Weed giant Canopy Growth closing in on deal to buy Acreage HoldingsCanadian cannabis giant Canopy Growth is close to a deal to purchase Acreage Holdings, sources familiar with the deal told CNBC. StockGuru2k18 Great news for the sector tomorrow lol StockGuru2k18 Ok is it a merger or fcuking acquisition?
Source: CNBC - 🏆 12. / 72 Read more »
Every iPhone and Apple Deal At Best Buy Right NowApple is constantly offering new products, and retailers like Best Buy are constantly refreshing their inventory. As a result, these retailers offer great deals on older models to free up shelf space, and we'll help you take advantage of those deals. WhereIsJuliansCat
Source: Forbes - 🏆 394. / 53 Read more »
Rich millennials are buying vacation homes before starter homes. There are 3 things you should consider before buying one, says a financial expert.There are three main reasons why people consider buying a vacation home, according to financial expert Jean Chatzky. Here's what you should know first. For my dear Mel and my lovely little friends. ..Thank you for your love and support.
Source: BusinessInsider - 🏆 729. / 51 Read more »
Best Buy CFO to replace Hubert Joly as CEOBest Buy Co Inc on Monday named Chief Financial Officer Corie Barry as the compa... Lol Best Buy going out of business soon She’s done a lot of coke WELL ….there goes Best Buy... into the trash
Source: Reuters - 🏆 2. / 97 Read more »
5 reasons why now is the best time to buy an Apple WatchThe Apple Watch is easily the most personal device Apple has ever created.
Source: BusinessInsider - 🏆 729. / 51 Read more »
Turkey says buying Russian defense system should not trigger U.S. sanctionsTurkey's purchase of Russian air defense missile systems should not trigger... Turkey is not to be trusted. If it weren't for the Straight of Dardanelles, they wouldn't even be in NATO. Their treatment of Kurds has been rather abysmal, despite the honour shown by the latter. 'Self-interest' sums them up wonderfully. Trustworthy, no. I love the alliance of Russia, China, Turkey, Philippines ect.. America is the true evil empire. Good luck Erdogan, your S400 will not shoot down your muddled Central Bank fiscal policy which launched hyper inflation!
Source: Reuters - 🏆 2. / 97 Read more »
Publicis’ biggest buy distracts from deeper issuesChief Executive Arthur Sadoun is spending $4.4 bln on Alliance Data Systems’ Epsilon digital marketing unit. It’s a bold bet on more targeted advertising, but does little to help the French group hit next year’s 4 pct organic revenue growth target, or lure back lost clients.
Source: Breakingviews - 🏆 470. / 51 Read more »
Warner Bros. plans to buy Burbank Studios and occupy new Frank Gehry ‘iceberg’ towersWarner Bros. has sweeping plans to expand its Burbank headquarters by acquiring a nearby studio complex and moving into two Frank Gehry-designed office towers fashioned to look like icebergs floating alongside the 134 Freeway. Superman's Fortress of Solitude Bigger is better?
Source: latimes - 🏆 11. / 82 Read more »
Waste Management to Buy Advanced Disposal Services for About $2.9 BillionWaste Management will buy its smaller rival Advanced Disposal Services in a roughly $2.9 billion deal, marking its biggest acquisition ever Ooh monopoly.... That's great for consumers Get out they pockets Barklie
Source: WSJ - 🏆 98. / 63 Read more »
Catalent reportedly to buy Paragon Bioservices for $1.2 billionCatalent said on Monday it would buy privately held gene therapy-focused Paragon Bioservices Inc in an all-cash deal for $1.2 billion.
Source: CNBC - 🏆 12. / 72 Read more »