Canopy Growth Corporation and Acreage Holdings, Inc. today confirmed that Canopy USA, LLC has completed its acquisition of Acreage. Canopy USA now owns 100% of the issued and outstanding shares of Acreage.
Together with the completed acquisition of 100% of Wana Wellness, LLC, The CIMA Group, LLC and Mountain High Products, LLC (collectively, "Wana"), as announced on October 9, 2024, and approximately 77% of the shares of Lemurian, Inc. ("Jetty") as announced on June 4, 2024, Canopy USA is fulfilling its ambition of establishing a leading brand-focused cannabis company in the U.S.
"Completing the acquisition of Acreage marks the final step in establishing Canopy USA as a unified platform which we believe offers significant upside as the Canopy USA portfolio of brands can now capitalize on the rapidly expanding U.S. cannabis market, independent of the need for federal legalization," said David Klein, CEO, Canopy Growth and member of the Board of Managers of Canopy USA. "With a vertically integrated presence across key U.S. states in the Midwest and Northeast, as well as licensing agreements which support asset-light operations in state-legal markets nationally, Canopy USA is well positioned to demonstrate efficient growth ahead."
"Together with Wana and Jetty, two highly respected cannabis brands in the U.S., Acreage has an incredible opportunity to drive combined growth and innovation under Canopy USA," said Dennis Curran, CEO, Acreage. "With Acreage's product portfolio, established retail presence, and production capabilities across the Midwest and Northeast, this integration positions Acreage to expand its reach, better serve its customers, and deliver meaningful value to the market. It is exciting to see the opportunities ahead and the shared vision under Canopy USA."
The completed acquisitions of Acreage and Wana, and approximately 77% of the shares of Jetty, are expected to enable Canopy USA to realize anticipated financial benefits, including revenue growth and cost synergies, marketing efficiencies, and joint sales advantages across key cannabis product categories such as vapes, edibles, and flower.
Overview of Canopy USA Strategy
- Fast Tracks Entry into the World's Largest and Fastest Growing Cannabis Market: The U.S. retail cannabis market is projected to be as high as approximately $50 billion in 20261, and this strategy aims to unlock the ability to capture share and return on investments made to date.
- Establishes a Leading, Brand Focused Powerhouse: Canopy USA's portfolio includes some of the most recognized, iconic cannabis brands in the U.S. that we believe are ideally positioned in the fastest growing categories, such as edibles, vapes, and flower. Canopy USA is expected to leverage the best of each brand's offerings to accelerate growth and market expansion across key U.S. states.
- Financial Benefit via Revenue and Cost Synergies within Canopy USA: The combination of U.S. cannabis assets is expected to generate revenue and cost synergies within Canopy USA by leveraging the brands, routes to market and operations of the full U.S. cannabis ecosystem while eliminating redundancies across certain of the U.S. THC portfolio of assets and the public company reporting costs of Acreage.
- Highlights the Value of Canopy USA's U.S. THC Assets: While Canopy Growth will not consolidate the financial results of Canopy USA, Canopy Growth expects to begin to highlight the value of Canopy USA's U.S. THC assets to investors now that the Acreage Acquisition is complete. Canopy Growth now holds all of the issued and outstanding non-voting shares in the capital of Canopy USA, representing approximately 84.4% of the issued and outstanding shares in Canopy USA on an as-converted basis.
