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 $2.45 billion as of Wednesday’s close, but the deal will be worth “several billions” in Canadian dollars, the source said.
Canada’s Canopy Growth is close to a deal to acquire New York-based marijuana multistate operator Acreage Holdings, multiple sources, including CNBC and Bloomberg, reported Wednesday.
If true, it would be the first cross-border deal involving a Canadian marijuana licensed company buying a non-hemp U.S. multistate operator.
In a press release, The Horizons Marijuana Life Sciences Index ETF (HMMJ), which offers direct exposure to North American-listed companies with business activities in the marijuana industry, said its total assets under management have grown to more than $1 billion Canadian dollars — $760 million U.S.