Bruce Linton, Founder and Co-CEO of Canopy Growth, speaks to CNBC on the floor of the New York Stock Exchange in New York, U.S., March 7, 2019Canopy Growth on Thursday announced it entered an agreement to purchase Acreage Holdings, a US pot company.
Canadian marijuana behemoth Canopy Growth announced on Thursday morning that it has entered into a conditional agreement to purchase Acreage Holdings, a US pot company, for $3.4 billion pending federal legalization in the US. "This would certainly be one of the most complex M&A transactions I've ever worked on," said Jonathan Sherman, a partner at the law firm Cassels Brock, in an interview. Sherman, along with Cassels Brock partner Jamie Litchen, led Canopy's involvement on the deal.
As part of the deal, Acreage shareholders — including former Republican Speaker of the House John Boehner — will receive an immediate $300 million payment, pending approval by the Supreme Court of British Columbia as well as both Canopy and Acreage shareholders. "When we were negotiating the transaction, we kind of had to pull from a bunch of different places — it's a little bit part M&A, part joint venture in the sense that you've got two companies coming together with separate management teams, separate boards, and remain distinct entities for some time," said Sherman.
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