Acreage Holdings ACRGF

Healthcare Drug Manufacturers - Major

Acreage Holdings Inc is a vertically integrated, multi-state operator in the cannabis industry. Its business operations include cultivating, processing, distributing and retailing cannabis. The Company derives its revenues from its retail dispensary business where cannabis and cannabis-infused products are sold to consumers. Its geographic segments include New England, Mid-Atlantic, Midwest, West and South.

OTCQX:ACRGF - Post by User

Acreage Holdings > Cannabis Behemoth Canopy Growth Close to Acquiring Acreage

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Comment by Countrygenton Apr 17, 2019 10:03pm

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Post# 29642198

RE:Cannabis Behemoth Canopy Growth Close to Acquiring Acreage

From a tweet by Marijuanastocks.com:

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. listing, which was cross-listed from the TSX, and instead look to the Canadian Securities Exchange and over-the-counter trading in the U.S., as publicly-listed U.S. companies do.

Instead, Canopy Growth will purchase the rights to buy Acreage when (or if) 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.

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The bump in value at least 200%? Under a billion to “billions”?

Then some discount for legalization timelines and uncertainty?

BUT ... assuming ACRG remains a listed entity ... the exposure and valuation to the wider market will be helpful to price and liquidity to say the least. Hmmm. Those $13 shares during the December slump looking like a present from Santa.

cg