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Bruce Linton, chief executive officer of Canopy Growth Corp.
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Canadian marijuana grower Canopy Growth announced Thursday a $3.4 billion deal to acquire Acreage Holdings after cannabis has been legalized in the United States.
The deal, which was finalized Thursday morning in New York, grants Canopy the right to buy all of Acreage's stock following nationwide legalization; the two companies will operate independently until then. It will also grant Acreage access to Canopy vault of brands including Tweed.
"Today we announce a complex transaction with a simple objective. Our right to acquire Acreage secures our entrance strategy into the United States as soon as a federally-permissible pathway exists," said Canopy co-CEO Bruce Linton in a press release. "By combining Acreage's management team, licenses and assets with Canopy Growth's intellectual property and brands, there will be tremendous value creation for both companies' shareholders."
Canopy's stock soared more than 8% shortly after the opening bell Thursday following the announcement.
