Canadian cannabis producer Canopy Growth Corp. has agreed to absorb a trio of companies within its newly formed holdings entity, Canopy USA.
Under the deals, which still need approvals from shareholders, Canopy USA will acquire all of Acreage Holdings, as well as Jetty Extracts and Wana Brands, in a longstanding bid to gain entry into the U.S. cannabis industry.
“As the growth of the U.S. cannabis market continues rapidly at the state level, this strategy enables us to take control of our own destiny and capitalize on the once-in-a-generation opportunity in the largest cannabis market in the world,” said Canopy CEO David Klein.
Canopy’s core business will not immediately benefit from the new stream of sales since plant-touching companies in Canada cannot grow or sell marijuana in the U.S. because of the federal prohibition.
Still, President Joe Biden recently signaling a review on how the drug is classified could provide a pathway to allow Canopy to operate in the U.S.
Canopy fashioned a deal three years ago to buy Acreage for $3.4 billion once the U.S. legalizes marijuana federally. With the issue mostly stuck in limbo, the new move fast-tracks the closing with Canopy USA completing the takeover, the company said.
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