Canopy USA Exercises Rights to Acquire Wana, Jetty
Canada-based Canopy Growth Corporation previously moved to acquire U.S. companies.
Canopy Growth Corporation has confirmed that Canopy USA, LLC has exercised its options to acquire Wana and Jetty Extracts.
The company says the acquisitions will allow Canopy USA to establish a brand-focused powerhouse and see financial benefits, including the ability to drive revenue growth and realize cost synergies across the Canopy USA ecosystem.
"With these acquisitions now triggered, Canopy USA has taken a crucial step forward in bringing together these high potential businesses and will soon be able to demonstrate the full potential of this ecosystem across the U.S. cannabis market," said Canopy Growth CEO David Klein. "In addition to the positive signals we're seeing on near term regulatory reform in the U.S., there's significant potential in putting together leading brands like Wana and Jetty, and we're excited to see how these brands can collaborate to become even stronger.”
The closing of the acquisition of each of Wana Wellness, LLC, The CIMA Group, LLC and Mountain High Products, LLC (collectively, Wana) and Lemurian, Inc. (Jetty) is subject to customary closing conditions, including receipt of regulatory approvals. Following the initial closing, Canopy USA will own 100% of the outstanding equity interests in Wana and approximately 75% of the outstanding shares of Jetty.
Canopy USA will not pay any additional consideration to acquire Wana and Jetty. Canopy announced plans to acquire Wana in October 2021 and Jetty in May 2022, upon “federal permissibility” of THC in the U.S.
While THC is still federally illegal, last month the Associated Press reported that the U.S. Drug Enforcement Administration plans to reschedule cannabis from Schedule I to Schedule III, potentially reducing the tax burden and increasing access to financial services for cannabis businesses.
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