Canopy Growth to Acquire Wana Brands in $300M Deal

High Times

Cannabis industry powerhouse Canopy Growth Corporation announced that it has entered an agreement to acquire Wana Brands, the continent’s largest cannabis edibles brand by market share, in a deal worth nearly $300 million. Under the terms of the agreement, Canopy has secured options to purchase Wana and its related entities once THC products become federally legal in the United States.  “As we establish Canopy Growth as the world’s leading cannabis company, acquiring the number-one cannabis edibles brand in North America will serve to strengthen our market position in both Canada and the United States,” Canopy Growth CEO David Klein said in a press release.  “The right to acquire Wana secures another major, direct pathway into the U.S. THC market upon federal permissibility, and in Canada, we’ll be adding the top-ranked cannabinoid gummies to our industry-leading house of brands. We’re confident in the future growth of the edibles category and the tremendous opportunities with Wana.” The agreement provides Canopy Growth the right to acquire 100 percent of the outstanding membership interests in Wana Brands and its related entities Mountain High Products, Wana Wellness and The Cima Group, upon the federal legality of THC in the U.S. market.  When exercising the option, Canopy Growth will make an additional payment equal to 15 percent of the fair market value of each entity at the time it is acquired. The two companies will continue to operate independently until the options are exercised. Deal Will Unite Two Major Players Wana manufactures and sells cannabis gummies in Colorado and licenses its intellectual property to partners producing cannabis edibles in 11 other states including California, Arizona, Illinois, Michigan and Florida, as well as across Canada.  Canopy Growth is a Canadian-based cannabis and cannabinoid consumer products company serving adult-use customers with an array of regulated marijuana products through…

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Source : Canopy Growth to Acquire Wana Brands in 0M Deal

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