Canopy Growth solidifies U.S. plans with US$3.4 billion deal for Acreage Holdings
It was another big day for Canopy Growth. The world’s biggest cannabis company solidified its presence in the U.S. after formally announcing plans to acquire U.S. multi-state cannabis operator Acreage Holdings for US$3.4 billion – but the deal will only take place once the U.S. federally legalizes marijuana. Under the terms of the agreement announced Thursday, Canopy will make a US$300-million payment once the arrangement is approved by shareholders. If Canopy exercises its right to proceed with the takeover, Acreage shareholders will receive 0.5818 of a Canopy share for each share held. News of the deal sent Canopy shares soaring in early trading on the Toronto Stock Exchange, pushing Canada’s main stock market to a new intraday record. The tie-up with Acreage would mark another major breakthrough for Canopy about eight months after Constellation Brands invested $5-billion for a 38 per cent stake in the Canadian pot producer.
Ontario business group urges province to do better on cannabis regulations, open up more pot stores
The Ontario Chamber of Commerce released a report Thursday revisiting how the past several months of legal pot has fared in the province, and the group has some 18 recommendations on how to improve the process. The OCC says the province should open up the application process for pot shops, award new retail licences on the basis of merit and recommends allowing online sales from licensed producers. As Canada’s largest cannabis market, the OCC believes Ontario has a unique role to play in ensuring the legal market remain competitive – and that more work needs to be done to grow the economic benefits of the industry.
Slight increase in cannabis supply to net 26 new cannabis shops in Alberta
Alberta is getting a bunch more cannabis stores – 26, to be exact. Global News reported the province’s cannabis regulator sent notices to prospective retailers that “slight increases in available inventory” is making it now possible for new retail licences to be issued. Alberta Gaming Liquor and Cannabis issued 10 new licences in January but notably suspended the roll-out of new cannabis stores in the province back in November, just weeks after pot was legalized in Canada, amid a nationwide shortage of marijuana.
4-20 event expected to draw thousands to Vancouver beach
Saturday marks the first time “4-20,” a reference to the unofficial marijuana holiday, will be celebrated in Canada with recreational cannabis as a legal drug. In Vancouver, the occasion is expected to draw thousands of people to an unsanctioned 25th annual event at Sunset Beach, which will feature a concert by Cypress Hill, as well as vendors selling marijuana and edibles. The famed hip hop group is expected to draw large crowds, and city police say they will focus on arresting anyone selling to minors. For those who can’t make it to the Vancouver beach, Pizza Pizza is marking the holiday by selling small cheese and pepperonis pizzas for $4.20 at select locations across the country.
DAILY BUZZ
“The game has changed again.”
-- Canopy Growth CEO Bruce Linton on his deal to acquire U.S. cannabis producer Acreage Holdings for US$3.4 billion.
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