Canopy Growth Corporation (TSX: WEED) (NASDAQ: CGC) acquired the right to buy Wana Brands, the number one cannabis edibles brand in the U.S. by market share, upon federal cannabis legalization. The cannabis giant confirmed Thursday it has signed definitive agreements for this arrangement with Mountain High Products, LLC, Wana Wellness, LLC, and The Cima Group, LLC (collectively Wana).
Under the deal, Canopy has to provide an upfront payment of $297.5 million in cash as part of the acquisition compensation.
Wana-branded gummies are sold across 12 states in the U.S. and Canada, with plans to reach 20 U.S. states, including future recreational use markets in New York and New Jersey before the end of 2022.
The Deal Details
The agreements were formed as three separate option agreements, under which Canopy has a call option to buy 100% of the …