Last week, Canadian cannabis company Canopy Growth announced plans to accelerate its entry into the US market. The company said it was consolidating its US assets into a new company, Canopy USA.
Canopy’s US portfolio will include the purchase of multi-state operator Acreage Holdings, California-based extractor Jetty Extracts and oil makeredibles Wana Brands – which Canopy had agreed to buy once cannabis was legalized by US law. Canopy, however, decided not to wait for US federal legalization.
David Klein, CEO of Canopy, said the strategy will allow the company to “take charge” of its own destiny “and capitalize on the unique opportunity that the world’s largest cannabis market represents.” »
“We plan to unleash the full power of Canopy into the US cannabis ecosystem to unlock potential expansion opportunities. This strategy and positioning are true differentiators that we believe will enable our investors and our brands to realize near-term value while positioning Canopy for profitable growth and a quick start upon obtaining federal clearance. American,” explained David Klein in a press release.
The operation could take a year and a half, the time to obtain the necessary authorizations from both the American economic authorities and the various boards companies to be acquired.
Constellation Brands, the spirits giant that put more than $4 billion into Canopy said it plans to step back into a more passive, non-voting role. The alcoholic will retain its current stake but will no longer be permitted to appoint representatives to Canopy’s board of directors or approve certain transactions. He will also no longer have the right to review Canopy’s financial results.
“This transaction and the forfeiture of our warrants should eliminate the impact on our profit share, mitigate the risk to our organization and reinforce our intention not to deploy additional investments in Canopy, consistent with allocation priorities. of capital previously set forth by Constellation,” said Bill Newlands, President and CEO of Constellation.
Collectively, Canopy’s footprint currently spans 21 US states, including Arizona, Arkansas, California, Colorado, Connecticut, Florida, Illinois, Maine, Maryland, Massachusetts, Michigan, Missouri, Nevada, New Hampshire, New Jersey, New Mexico, New York, Pennsylvania, Ohio, Oklahoma and Oregon.