Canopy Growth Corp. buys Acreage Holdings Inc.

US - Canopy Growth Corp (Canopy) of Canada definitively agreed to acquire the entire share capital of Acreage Holdings Inc (Acreage), manufacturer of medical cannabis, for an estimated USD 1.584 bil, in a stock swap transaction, via scheme of arrangement. The consideration was to consist of USD 2.55 in cash per share, or a total USD 112.899 mil and 0.5818 Canopy common shares per Acreage share. The shares were valued based on the Canopy's closing stock price of USD 57.11 on 17 April 2019, the last full trading day prior to the announcement.

Date Announced: 04/18/2019
Deal Status (as of publication date): Pending
Deal Value (US mil): US$1,563.5

ACQUIRER ADVISORS
Greenhill & Co, LLC (Financial Advisor)
PricewaterhouseCoopers
(Financial Advisor)
Cassels Brock & Blackwell LLP
(Legal Advisor)
Paul Hastings LLP
(Legal Advisor)
Osler Hoskin & Harcourt LLP (Legal Advisor)

TARGET ADVISORS

Canaccord Genuity Corp. (Financial Advisor)
INFOR Financial
(Financial Advisor)
DLA Piper LLP
(Legal Advisor)
Cozen & O'Connor
(Legal Advisor)
Stikeman Elliott
 LLP (Legal Advisor)

Canopy Growth Corp, located in Smiths Falls, Ontario, is a cannabis and hemp company. It offers distinct brands and curated cannabis varieties in dried, oil and softgel capsule forms. The Company, through its subsidiaries Tweed Inc, Bedrocan Canada Inc, Tweed Farms Inc and Mettrum Health Corp is engaged in the business of producing and selling legal marijuana in the Canadian medical market. It is also focusing on producing and selling marijuana in the recreational market in Canada. Its core brands are Tweed and Bedrocan. Tweed is a licensed producer of medical marijuana. Tweed's commercial license covers approximately 168,000 square feet of its Smiths Falls facility and allows Tweed to produce and sell approximately 3,540 kilograms of medical marijuana per year. Tweed's built-out production capacity is over 10 climate controlled indoor growing rooms. Bedrocan is a medical-grade cannabis. Bedrocan's over 52,000 square feet production facility in Toronto, Ontario is licensed, and includes over 30 vegetative and growing rooms, and over three dispensing rooms. The Company was founded on August 5, 2009.

Acreage Holdings Inc, located in New York City, New York, is a manufacturer of medical cannabis. The Company is a vertically integrated, multi-state owner of cannabis licenses and assets in the United States. It is a cannabis company focused on building and scaling operations to create seamless, consumer-focused branded cannabis experience. It also owns, operates cultivation, processing and dispensary operations. The Company is also a holding company and all of its assets are the capital stock of the subsidiaries in each of the markets they operate in. The Company was founded in July 1989.

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