On June 20, 2019, Canopy Growth (WEED) (CGC) announced that it had received overwhelming support in favor of its acquisition of Acreage Holdings (ACRGF). About 99.05% of shareholders voted in favor of the acquisition. Note that this acquisition is still contingent on the US’s legalizing cannabis at the federal level. In its press release, Canopy Growth stated that it would await “changes in US federal law to permit the general cultivation, distribution, and possession of cannabis or to remove the regulation of such activities from the federal Laws of the United States.”
Note that the US still allows some forms of cannabis-derived products that come from hemp, so Canopy Growth has developed operations to capture the hemp-based industry within the country. In its press release, Canopy Growth provided updates related to its hemp operations in the US. It stated that it has contracts with US farmers or owns cannabidiol operations in seven states in the US, which it’s using for the development of hemp products such as proteins, bioplastics, and textiles.
Canopy Growth stated that Acreage Holdings’ platform could be leveraged to support its hemp-based efforts in the US. According to the company, “The assets of Acreage could also form a substantial part of the Company’s long-term strategic US platform.”
Canopy Growth is set to announce its earnings after the market closes. Read Canopy Growth’s 4Q Earnings: Profitability Expectations to learn more.