- Canopy Growth (TSX:WEED), a popular cannabis stock, has exercised its option to acquire Acreage Holdings (CSE:ACRG.A.U.), a multi-state cultivator and retailer based out of New York City
- The news follows Canopy’s acquisitions of Wana and Jetty Extracts, positioning it for U.S. expansion
- Canopy Growth is the North American cannabis company behind the brands Doja, 7ACRES, Tweed, Deep Space and Storz & Bickel
- Canopy Growth stock has gained 2.48 per cent year-over-year, but remains down by 98.08 per cent since 2019
Canopy Growth (TSX:WEED), a popular cannabis stock, has exercised its option to acquire Acreage Holdings (CSE:ACRG.A.U.), a multi-state cultivator and retailer based out of New York City.
Acreage and its award-winning brands, The Botanist and Superflux, will become a wholly owned subsidiary of Canopy USA – the holding company at the heart of Canopy’s U.S. expansion strategy – joining recent acquirees Wana and Jetty Extracts, which are leaders in cannabis edibles and vape technology, respectively. Canopy USA’s acquisition of Mountain High Products, the last of three Wana business units including Wana Wellness and The CIMA Group, is expected to close in the first half of fiscal 2025.
The Acreage acquisition follows the U.S. Department of Justice’s recommendation to reclassify cannabis as a lower-risk drug and President Biden’s support of the proposal, which caused cannabis stocks to surge in response, and marks the federal government’s first acknowledgement of the plant’s medicinal benefits since enacting the Controlled Substances Act in 1970.
Twenty-four U.S. states have legalized cannabis for recreational use, with 38 having legalized it for medicinal use, representing a market Statista estimates to reach almost US$50 billion by 2029.
Leadership insights
“These are major steps forward and consistent with the strategy outlined by Canopy Growth to allow our shareholders to benefit from our ownership of non-voting shares in Canopy USA, and 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,” David Klein, Canopy Growth’s chief executive officer, said in a statement. “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.”
About Canopy Growth
Canopy Growth is the North American cannabis company behind the brands Doja, 7ACRES, Tweed, Deep Space and Storz & Bickel.
Canopy Growth stock (TSX:WEED) is down by 1.56 per cent, trading at C$10.76 per share as of 9:55 am ET. The stock has gained 2.48 per cent year-over-year, but remains down by 98.08 per cent since 2019.
Join the discussion: Learn what other investors are saying about these cannabis stocks on the Canopy Growth Corp. and Acreage Holdings Inc. Bullboards, and check out Stockhouse’s stock forums and message boards.
The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here.
(Top photo: Acreage Holdings)