Winnipeg Free Press By: Tara Deschamps, The Canadian Press Posted:
Last Modified: 1:48 PM CDT Thursday, Apr. 8, 2021
TORONTO - Canopy Growth Corp. continued its recent acquisition spree and preparation for the U.S. s potential legalization of pot with a $435-million deal to buy the Supreme Cannabis Co. Inc. on Thursday.
Staff work in a marijuana grow room at Canopy Growth s Tweed facility in Smiths Falls, Ont. on Thursday, Aug. 23, 2018. THE CANADIAN PRESS/Sean Kilpatrick
TORONTO - Canopy Growth Corp. continued its recent acquisition spree and preparation for the U.S. s potential legalization of pot with a $435-million deal to buy the Supreme Cannabis Co. Inc. on Thursday.
iN420 - Canopy Growth signs deal worth $435 million to buy Supreme Cannabis
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REUTERS/Blair Gable
Canopy Growth is buying Supreme Cannabis in a $346 million mostly stock deal.
Canopy s CEO said the deal targets the premium end of the market and lays groundwork for US expansion.
Analysts called the deal a positive for Canopy but not transformational.
Canadian cannabis giant Canopy Growth has been on an acquisition spree in recent weeks, snapping up smaller companies in a bid to boost profitability at home and lay the groundwork for US expansion.
Canopy, the world s largest cannabis company by market cap, said on Thursday morning it would pay approximately C$435 million ($346 million) in a mostly stock deal, including debt, to acquire The Supreme Cannabis Company, which sells the 7Acres line of cannabis products in Canada. The company closed its acquisition of AV Cannabis, a Toronto-based company that produces the Ace Valley line of cannabis products, earlier this month.
Canopy Growth Corp. is buying rival pot producer Supreme Cannabis Company Inc. for $435 million in a cash-and-stock deal aimed at bolstering its share of the Canadian recreational market.
The deal comes a few days after Canopy announced it had bought the parent company behind Ace Valley, a white-label cannabis company that sells pre-rolls, vapes, and edibles in the Canadian market. While that deal expanded the company s premium offerings in Canada, the deal for Supreme gives Canopy another leading national brand that has a reputation for high quality and consumer traction.
Canopy said in a release it expects approximately $30 million in cost synergies over the next two years once the deal closes. The company also said the tie-up with Supreme will give it a 13.6-per-cent share of the Canadian cannabis market, including a top position in the premium dried flower and PAX vape categories. It will also acquire a small cannabis cultivation facility in Kincardine, Ont. as well as some s
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