Canopy redesigned the terms of its conditional deal to buy U.S. REC player Acreage Holdings, and will now pay roughly US$843M instead of its previously promised $3.4B.
New Cannabis Ventures, Financial Post
- The companies blamed the volatility of the markets that led to Acreage losing 60% of its share value year to date, while Canopy shares have lost 13% of their value.
- The transaction will occur as soon as legally possible in the U.S., possibly before federal legalization. The cost is calculated according to ratios of each company’s share prices, so the amount Canopy will pay remains to be determined.
- Beyond the calculation of cost, the deal gets even more complicated (and includes a $37.5M cash payment).
Canadian Lawyer, MJ Biz Daily
- If, like me, you’ve never heard of a cannabis germplasm repository (CGR) and don’t know why Canada might need one, this article explains how such a thing would protect the genetics at the core of the sector.
- Responding to pressure from MED advocates, Health Canada extended the expiry date of registrations for licensed home MED growers by six months.
Twitter–@MedCannCA, Health Canada, StratCann