Canadian cannabis company Canopy Growth Corp. (CGC, WEED.TO) said Wednesday that its shareholders have approved its proposed $3.4 billion acquisition of U.S. cannabis chain Acreage Holdings Inc. (ACRGF).
Canopy Growth noted that 99.05 percent of its shareholders who voted at a special meeting of shareholders held on Wednesday have approved the transaction.
In addition to the approval by Canopy Growth shareholders, shareholders of Acreage Holdings also approved the transaction at a special meeting of shareholders held simultaneously today.
“Completion of the Transaction is intended to position us to efficiently and effectively enter the US cannabis market once federally permissible. Alongside our international market strategies and US Hemp strategy, we believe the acquisition of Acreage will be a key step in bolstering our position as a truly global company,” said Bruce Linton, Chairman & Co-CEO of Canopy Growth.
Canopy Growth said that the company and Acreage expect the transaction to be implemented on or about June 27, 2019. Completion of the transaction is contingent on cannabis production and sale becomes federally legal in the U.S.
Canopy Growth also provided an update on its U.S. hemp and CBD operations.
The company now owns or contracts hemp operations in seven U.S. states – California, Colorado, Kentucky, New York, North Carolina, Oregon and Pennsylvania.
Canopy Growth is currently planting a mixture of high-CBD varieties and high-fibre genetics that could supply the necessary raw material for large-scale, industrialized hemp-based products such as textiles, proteins and bioplastics.
When at full capacity, Canopy Growth’s footprint in the U.S., largely contracted with American farmers compared to owned operations, will cover more than 4,000 acres.
Of this, almost half of that entire farming platform will be located in New York State, which will include approximately 1,000 acres of high-CBD hemp, along with an additional 1,000 acres of high-fibre hemp growth.
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