Canopy Growth on Thursday announced it entered an agreement to purchase Acreage Holdings, a US pot company.
The groundbreaking, $3.4 billion deal would be the first example of a Canadian cannabis company buying up a US operator.
The deal will provide an opportunity for companies from consumer packaged goods, cannabis, and pharmaceutical industries to get exposure to the lucrative US market without violating federal law.
Canadian marijuana behemoth Canopy Growth announced on Thursday morning that it has entered into a conditional agreement to purchase Acreage Holdings, a US pot company, for $3.4 billion pending federal legalization in the US.
But the reason the deal sent a shockwave through the cannabis industry was not only because of its size.
It’s because of the complicated nature of the cannabis industry, where the drug is fully legalized in Canada but not in the US. It was long thought by Canadian marijuana cultivators, or licensed producers (LPs), that investing in US assets would be considered illegal – thereby putting their stock exchange listing in jeopardy. Until this deal, Canadian marijuana producers like Canopy have generally avoided investing in the US even though that market is set to be