Canadian Cannabis firm, Canopy Growth, has sealed a deal with the New York-based cannabis company, Acreage Holdings to buy shares in it. Although the deal was struck last April, now it has been again revised between the two firms.
It has been decided that Canopy Growth would not buy 100% shares of Acreage Holdings but it would restrict itself to only 70% share in the US cannabis firm. This will mark the entry of Canopy Growth in the US marijuana market once the US federal government legalized the use of cannabis.
Following the new deal between the two companies, Acreage CEO Kevin Murphy has decided to resign from his position. It is because two new share classes namely, a fixed share and a floating share, have been created by Acreage in the new share agreement.
Due to the challenging economic situation, the price per share is reduced from the last year’s $9.49 to $5.49. The price for a floating share will be at least $6.41 and it has already started buying floating shares of Acreage.
In addition to buying Acreage, the Canadian cannabis firm has also decided to introduce THC-infused cannabis drinks in the US in 2021 by partnering with NY-based cannabis firm, Acreage Holdings. Canopy’s Tweed carbonated drinks and Houseplant sparkling waters would contain 2 mg to 2.5 mg of THC.
Moreover, new brands for adults will also be made available in the US. The company hopes the US will legalize cannabis by 2022. The new agreement is only justified if the US legalized cannabis within the legalized window of 10 years.