(Adds deal details, background)
April 18 (Reuters) - Canadian marijuana producer Canopy Growth Corp on Thursday announced a plan to buy Acreage Holdings Inc for $3.4 billion once the United States legalizes the production and sale of cannabis.
The deal value represents a premium of 41.7 percent over the 30-day volume weighted average price of Acreage subordinate voting shares ending April 16, the companies said in a statement.
"Our right to acquire Acreage secures our entrance strategy into the United States as soon as a federally-permissible pathway exists," Canopy Chairman and co-Chief Executive Officer Bruce Linton said.
Reuters had reported on Wednesday that the two companies were nearing a deal.
A growing number of companies are trying to push into the U.S. Cannabis industry with the recreational use of cannabis now legal in 10 states and the District of Columbia and medical marijuana legal in 23 states. (Reporting by Arundhati Sarkar in Bengaluru; Editing by Anil D'Silva)