Shareholders of Canopy Growth (TSX:WEED; NYSE:CGC) and Acreage Holdings (CSE:ACGR; OTC:ACRGF; FSE:0ZV) at separate meetings overwhelmingly approved the proposed acquisition of Acreage by Canopy through a share exchange.
The acquisition, which was valued at about $3.4-billion based on both companies’ share price when the deal was announced in April, is expected to be implemented on June 27, 2019. But its completion depends on changes in U.S. federal law to permit the general cultivation, distribution, and possession of cannabis. Canopy’s agreement to acquire all of Acreage’s outstanding shares does not expire for 7 1/2 years.
“Completion of the transaction is intended to position us to efficiently and effectively enter the U.S. cannabis market once federally permissible,” Bruce Linton, chairman & co-CEO of Canopy, said in a statement.
“Alongside our international market strategies and U.S. hemp strategy, we believe the acquisition of Acreage will be a key step in bolstering our position as a truly global company,” he added.