Canopy Growth to Fully Acquire Acreage Holdings in Strategic Expansion

LOS ANGELES- Canadian cannabis company Canopy Growth has agreed to acquire all issued and outstanding Class E shares of Acreage Holdings, a U.S.-based multistate cannabis operator. This acquisition is part of Canopy’s broader strategy to expand its presence in the U.S. market.

On Tuesday, Canopy Growth announced the agreement to fully take over Acreage Holdings, enhancing its footprint in the American cannabis industry. This move follows Canopy’s recent acquisitions of Wana Wellness, LLC, the CIMA Group, LLC, and a 77% stake in Lemurian, Inc., also known as Jetty. These acquisitions are part of Canopy Growth’s strategy to consolidate its market position and drive growth.

“With the acquisition of Jetty and two of the three Wana business units now complete, Canopy USA is demonstrating its executional capabilities, and we anticipate that these actions will drive growth and the realization of commercial synergies across Canopy USA’s operational platform,” stated Canopy Growth CEO David Klein.

The closing of the Acreage acquisition is contingent on meeting certain conditions. As part of the agreement, Canopy will also assume Acreage’s $99.8 million in outstanding debt, providing $69.8 million in cash and releasing approximately $30.1 million held in escrow.

Klein expressed optimism about the acquisition, highlighting the potential for growth as more states in the Midwest and Northeast of the U.S. legalize adult-use cannabis. “We’re excited to see this advancing as more of Canopy USA’s priority markets come online for adult use across the Midwest and Northeast,” he said.

Additionally, Canopy Growth’s acquisition of Mountain High Products, LLC, is expected to be finalized in the first half of fiscal year 2025. This series of acquisitions underscores Canopy Growth’s commitment to expanding its U.S. operations and capitalizing on the growing legal cannabis market.

These strategic moves reflect Canopy Growth’s aim to leverage its acquisitions to create synergies, enhance operational efficiency, and drive long-term growth in the competitive cannabis industry.