Canopy Growth, the world's largest Marijuana company, has announced its strike deal to take over Acreage, a US pharmaceutical firm, for a staggering $3.4 Billion following US federal legalization of recreational use of the drug. The deal was finalized on Friday morning following several months of negotiation.
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. 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
Following the news, investors learned of a sudden 8% spike in the market share, which continued to rise to 9.8% to close the financial week. According to experts, this increase is unlikely to fall.
Acreage Holdings is a New York based pharmaceutical firm which specialists in the production and retail of marijuana products across the US. While no official statement has been made, the Acreage brand will continue in the US under its new management at Canopy Growth.