Canopy Jumps Most in Four Years After Accelerating Pot Deals
- New company, Canopy USA, to buy Acreage Holdings, Jetty, Wana
- Shareholder Constellation can change to exchangeable stock
Marijuana plants grow in the Mother Room at the Canopy Growth Corp. facility in Smith Falls, Ontario, Canada.
Photographer: Chris Roussakis/BloombergCanadian pot producer Canopy Growth Corp. surged the most in more than four years after pulling the trigger on acquiring three companies it had planned to buy only when marijuana became federally legal in the US.
Chief Executive Officer David Klein said Canopy will create a new entity, Canopy USA LLC, to purchase the companies -- Acreage Holdings Inc., Jetty Extracts and Wana Brands -- in which it has options to take control in the event of US legalization. The deal, which is subject to a shareholder vote, will make Canopy profitable and allow it to create a US “house of brands” that can move into new states and use each company’s intellectual property -- even without the federal change that the deals were contingent on, he said.