- Canopy Growth (TSX:WEED) has confirmed that its U.S.-based holding company, Canopy USA, has completed its acquisition of Wana Brands, a North American leader in cannabis edibles
- The news follows a recent run of acquisitions, including Jetty Extracts and Acreage Holdings, designed to expedite Canopy’s path to multi-state operations in the United States
- Canopy Growth is the global cannabis company behind the brands Doja, 7ACRES, Tweed, Deep Space and Storz & Bickel
- Canopy Growth stock has given back 45.30 per cent year-over-year and 97.87 per cent since 2019
Canopy Growth (TSX:WEED) confirmed Wednesday that its U.S.-based holding company, Canopy USA, has completed its acquisition of Wana Brands, a North American leader in cannabis edibles.
The acquisition – including Wana Wellness, The CIMA Group and Mountain High Products – is part of Canopy’s plan to establish a brand-driven cannabis company in the United States. To this end, the company picked up multi-state cultivator and retailer Acreage Holdings and has invested in 75 per cent of Jetty Extracts, a California-based producer of cannabis extracts and the inventor of clean vape technology.
Wana and Jetty have since established a joint sales force targeting the New York market with a focus on the cannabis vape and edibles segments. Wana also recently launched Wanderous, a direct-to-consumer marketplace offering high-quality hemp-derived products, including Delta-9-THC and non-intoxicating CBD gummies from brands such as Wana, Cann, Happi, Charlotte’s Web, Martha Stewart CBD and MXXN.
According to Wednesday’s news release, Canopy expects the recent acquisition spree to enable it to “realize significant financial benefits, including revenue growth and cost synergies across the Canopy USA ecosystem.”
Canopy has been engaged in a long-term restructuring plan to right-size operations and stem losses of more than C$7 billion over the past five years because of excessive expansion, steep competition cutting into margins, and the fluctuating costs of a volatile inflationary environment. As previously reported on Stockhouse, the plan has shown signs of success on a year-over-year basis.
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“With Wana now part of Canopy USA alongside Jetty, Canopy USA is gaining momentum while reinforcing its commitment to building a diverse portfolio of industry-leading brands in the U.S. cannabis market,” David Klein, Canopy Growth’s chief executive officer, said in a statement. “Completing the acquisition of Wana marks another significant milestone in Canopy USA’s strategy and unlocks new growth opportunities across both state-legal markets and through hemp-derived products across the U.S.”
“This acquisition represents an exciting next step for Canopy USA, as we blend Wana’s expertise in crafting innovative edibles with Jetty’s pioneering developments in vape and extract products,” added Joe Hodas, president of Wana Brands. “With the launch of Wanderous, Wana’s one-stop-shop for premium hemp-derived products, and the expansion of the brand’s core portfolio into new U.S. states, Wana is continuing its leadership in the North American edibles category with trusted, high-quality product offerings.”
About Canopy Growth
Canopy Growth is the global cannabis company behind the brands Doja, 7ACRES, Tweed, Deep Space and Storz & Bickel.
Canopy Growth stock (TSX:WEED) is down by 1.97 per cent, trading at C$5.47 per share as of 9:37 am ET. The stock has given back 45.30 per cent year-over-year and 97.87 per cent since 2019.
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(Top photo: Wana Brands)