Canopy Completes Its Purchase Of Supreme

CANNANNEW REPORT

Canopy Growth Corporation  (TSX: WEED) (NASDAQ: CGC) has completed its acquisition of The Supreme Cannabis Company, Inc. (TSX: FIRE) (OTCQX: SPRWF), a deal that was valued at $435 million. Supreme Cannabis’s portfolio of brands includes 7ACRES, 7ACRES Craft Collective, Blissco, sugarleaf, and Hiway. Supreme Cannabis addresses national and international medical cannabis opportunities through its premium Truverra brand. As a result of the deal, Supreme has become a wholly-owned subsidiary of Canopy. Supreme shares are expected to be de-listed from the Toronto Stock Exchange on or about June 23, 2021. “Through the addition of Supreme, we’re strengthening our leadership position by offering Canadian consumers a differentiated brand portfolio – including the addition of 7ACRES, which further bolsters our premium product segment,” said David Klein, Chief Executive Officer of Canopy. “Supreme has demonstrated the ability to cultivate premium quality flower at low cost and we’re excited to leverage these capabilities to further our leadership in the Canadian market as we scale these newly added brands and accelerate revenue growth.” Canopy noted in a statement that the addition of 7ACRES and the 7ACRES Craft Collective enhances its leading market share position and supplements its production capacity through the acquisition of Supreme’s low-cost, scalable cultivation facility in Kincardine, Ontario. That facility has a proven capability for producing high-quality flower from sought-after strains that have earned Supreme’s brands their loyal consumer followings. Canopy also said that the acquisition of Supreme further strengthens its overall leadership position within the Canadian recreational market and creates a pro forma Q4 FY 2021 market share of 18.1%. The company previously said that the combined pro forma market share was estimated to be 23.3% of the premium flower segment in Ontario and 21.4% in British Columbia. However, Canopy Growth noted that cost synergies will not be felt for another two years and those are expected to be in the $30…

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