On Thursday at Benzinga's Cannabis Capital Conference in Toronto, the room buzzed over Canopy Growth Corp (NYSE: CGC) and its acquisition of Acreage Holdings Inc (OTC: ACRGF).
During the morningâs keynote, Harvest Health and Recreation (OTC: HRVSF) CEO Steve White said, "Bruce [Linton] is always one step ahead."
White heaped additional praise on Linton, saying, âat some point, heâs going to do something. You donât know what itâs going to be. They do everything they possibly can to get in front of their competitors and they did it again.â
Linton serves as CEO of Canopy Growth, the company he co-founded in 2013 under its original name Tweed Marijuana Inc.
Why It Matters
The acquisition of Acreage marks another standout move for Linton and Canopy, one of the premier names in the global cannabis market.
âHaving a U.S. presence has been top of mind for all the LPs and a very difficult problem to solve because of federal illegality,â said Alan Brocshtein of the 420 Investor and New Cannabis Ventures. âCanopy has once again opened the door by leading the way.â
White said the Acreage acquisition falls in line with some of the company's other recent moves.
Canopy + Acreage
Canopy explained in a press release how the acquisition allows the company to complement its CBD strategy in the U.S. with "an accelerated pathway into U.S. cannabis markets, once federally permissible." The deal is expected to provide improved access to capital for Acreage, clearing the way for accelerated expansion.
Linton expanded on the news of the acquisition.
âToday we announce a complex transaction with a simple objective. Our right to acquire Acreage secures our entrance strategy into the United States as soon as a federally-permissible pathway exists,â Linton said in the press release. âBy combining Acreageâs management team, licenses and assets with Canopy Growthâs intellectual property and brands, there will be tremendous value creation for both companiesâ shareholders.â
Canopy Growth's stock traded higher by 4.1 percent at $44.57 per share Thursday afternoon.
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