The landmark deal between marijuana companies Acreage Holdings and Canopy Growth has its roots amid bunk beds inside a small, cramped house in Klosters, Switzerland.
The landmark deal between marijuana companies Acreage Holdings Inc. and Canopy Growth Corp. has its roots amid bunk beds inside a small, cramped house in Klosters, Switzerland.
Linton is now pushing to convince Canopy Growth shareholders to approve the potentially groundbreaking marriage between a Canadian cannabis company and a U.S. multistate operator, amid a fight from some Acreage investors. Canopy and Acreage shareholders are expected to hold concurrent votes on the deal June 19, with both sides needing a majority vote to move forward.
“It’s a lot of overhead, but it also means they’re going to be strict on governance, because they have reputations they can’t risk — and we need that,” Linton said.Nonetheless, Canopy Growth gave Acreage a hard look before buying the company, sending its head of construction, head of lab work, head of retail, Linton and co-CEO Mark Zekulin to the U.S. for three days to inspect 12 sites. Executives also shopped around. Linton said they held talks with a large number of U.S.
To dream up the idea of acquiring the right to buy a U.S. multistate operator, Linton recalled a theme he has discussed with MarketWatch before — going in the wrong direction in order to figure out the correct path. Linton said that once he established those criteria, it became clear that it would be possible to give cash to shareholders of a multistate operator and transfer intellectual property as well. Because Canopy Growth cannot make any money on its expertise and technology in the U.S. due to the federal prohibition on marijuana, it is possible to charge Acreage nothing for it and remain in compliance.The deal itself values Acreage at about $3.
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