(Bloomberg) -- Canopy Growth Corp. agreed to buy Supreme Cannabis Co., one of Canada’s leading brands of marijuana, in the latest large deal to reshape the rapidly growing industry.

Canopy will acquire all of the company’s shares in a largely stock-based deal valued at C$435 million ($346 million), according to a statement Thursday. The transaction, expected to close by the end of June, represents a 66% premium over Supreme’s Wednesday closing price, the companies said.

Supreme’s shares soared as much as 60% Thursday in Toronto, while Canopy fell as much as 2.3%.

The agreement adds to a flurry of deal activity in the overcrowded cannabis space, with many companies looking to bolster their operations amid growing acceptance globally and possible federal legalization in the large U.S. market. Tilray Inc. and Aphria Inc. agreed in December to combine their operations, while Curaleaf Holdings Inc. reached a deal last month to buy Emmac Life Sciences Ltd.

The latest deal improves Canopy’s position in the Canadian recreational market due to the strong position of Supreme’s 7ACRES brand in raw flower and vapes. It also gives Canada-based Canopy another product as it positions itself for potential entry into the U.S. market. Canopy already has a deal with Acreage Holdings Inc. that will give it access to the U.S. market if federal legalization occurs.

David Klein, Canopy’s chief executive officer, said in a statement that the company was drawn to the Supreme deal by its “deep commitment to superior genetics, top-tier cultivation and strict quality control.”

The transaction could also be of significance to Constellation Brands Inc., the U.S. alcoholic-beverage company that has an almost 40% stake in Canopy.

(Updates with share trading in third paragraph)

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