Canopy Growth Corp. said Tuesday it will no longer wait until federal legalization to buy three U.S. cannabis companies amid opportunities to benefit from strong growth in state-by-state cannabis sales.
The holding company has an exchangeable share structure aimed at triggering full ownership of U.S. cannabis investments.
Canopy USA will house New York-based cannabis company Acreage Holdings Inc., Colorado-based cannabis edibles specialist Wana Brands and California extracts maker Jetty and allow Canopy to exercise rights to own 100 percent of the companies.
Third-party investors will hold 100 percent of the common shares of Canopy USA, the company said. Constellation Brands Inc., which invested $4 billion in Canopy when Canada fully legalized cannabis for adult use in 2018, will remain the largest shareholder in Canopy Growth. Its ownership stake remains unchanged following this announcement, but Constellation will not have a direct ownership in Canopy USA.
Canopy Chief Executive David Klein said the company expects the U.S. market to be worth more than $50 billion by 2026. The new structure allows Constellation to remain in compliance with U.S. cannabis laws.