- Acreage Holdings Inc. (ACRG.A.U), Canopy Growth Corporation (WEED), and Canopy USA LLC have signed a floating share arrangement agreement
- Canopy USA agreed to acquire all the issued and outstanding floating shares
- Canopy Growth agreed to sell roughly US$69.5 million of its shares
- Acreage expects the floating share arrangement to close in the second half of 2023
- Canopy Growth Corporation (WEED) is up 26.03 per cent, trading at $3.97 per share as of 3:40 p.m. ET
- Acreage Holdings Inc. (ACRG.A.U) is up 37.10 per cent, trading at $0.85 per share at 2:55 p.m. ET
Acreage Holdings Inc. (ACRG.A.U), Canopy Growth Corporation (WEED), and Canopy USA LLC have signed a floating share arrangement agreement.
Canopy Growth arranged to issue roughly US$30.5 million of its shares to certain current or former unitholders of a subsidiary of Acreage related to an existing amended tax receivable agreement and a payment with a value of approximately US$19.5 million in Canopy shares to certain directors, officers, or consultants of Acreage.
A final payment of US$19.5 million in Canopy Growth shares will be issued to certain eligible participants under an amended bonus plan just before the completion of the floating share arrangement.
Canopy USA agreed to acquire all the issued and outstanding floating shares for 0.4500 of a common share of Canopy Growth in exchange for each floating share.
Alongside this agreement, Canopy Growth waived its option to acquire the floating shares relating to a previous plan of arrangement with Acreage.
Canopy Growth also agreed to exercise its option to acquire Acreage’s outstanding class E subordinate voting shares at a fixed exchange ratio of 0.3048 of a Canopy Growth share for each fixed share.
Acreage expects the floating share arrangement to close in the second half of 2023, subject to certain approvals. It is anticipated that the acquisition by Canopy USA will be completed immediately following the closing of the floating share agreement.
Canopy Growth Corporation (WEED) is up 28.89 per cent, trading at $4.06 per share as of 3:16 p.m. ET.
Acreage Holdings Inc. (ACRG.A.U) is up 37.10 per cent, trading at $0.85 per share at 2:55 p.m. ET.
