Canopy Growth signs deal to buy US pot giant Acreage Holdings

Canopy Growth Is Near a Deal to Acquire Acreage HoldingsMore

Canopy Growth Is Near a Deal to Acquire Acreage HoldingsMore

Since then, the pair have been making moves.

Canopy Growth Corp. has signed an agreement to buy US company Acreage Holdings Inc. Why else would a well-seasoned player such as Canopy Growth make a bet of $3.4 billion in this market?

The Acreage acquisition is contingent on the USA legalizing pot at the federal level.

In laymen's terms, here's what the deal means, "This is Constellation's way to have a side door entry to the U.S. cannabis market when it becomes legal..."

Acreage has cannabis-related licences in 20 states.

Mercedes-AMG GLC 63, 63 Coupe
At the NY auto show this week, Mercedes followed that reveal up with the introduction of the ultra-hot GLC 63 and GLC 63 S Coupe. If you want heated and cooled cupholders, a head-up display, or the "Energising Comfort" massage function, that'll cost extra.

Constellation controls more than 35 percent of Canopy, after boosting an existing stake last August, and owns warrants to increase its ownership. HEXO (HEXO), which has delivered strong returns so far this year, gained 2.2%, followed by Cronos Group (CRON), which was up almost 1.9%.

"We believe the emerging cannabis market represents one of the most significant growth opportunities of our lifetime".

A sign featuring Canopy Growth Corporation's logo is pictured at their facility in Smiths Falls, Ontario, Canada, January 4, 2018.

Once cannabis becomes federally legal in the USA and Canopy exercises its right, it will pay an additional 0.5818 of a Canopy share for each Acreage subordinate voting share. Nonetheless, the acquisition news of Acreage Holdings sends an important signal about the possibility of the United States market opening up to cannabis legalization in the near future.

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