Canopy Growth to expedite entry into U.S. cannabis market

Canopy Growth (NASDAQ:CGC) said Monday the special meeting of shareholders approved creation of a new class of exchangeable shares, enabling acceleration of its entry into the U.S. retail cannabis market, which is estimated to reach US$50 billion in 2026.

In October 2022, the cannabis firm outlined a strategy to accelerate its entry into the U.S. cannabis market through the creation of a new U.S.-domiciled holding company, Canopy USA, LLC.

The local entity holds the company's U.S. cannabis investments, which will enable it to exercise rights to acquire Acreage Holdings, Mountain High Products, Wana Wellness and The Cima Group (collectively, "Wana") and Lemurian ("Jetty").

The acquisition of Acreage is expected to be completed by the end of Canopy Growth’s fiscal year 2025, while the Wana and Jetty transactions are likely to complete in the second quarter of FY2025.

"Canopy USA can now move quickly to acquire its U.S. assets in Wana, Jetty, and Acreage, and we expect Canopy Growth to begin highlighting Canopy USA's financial performance to our shareholders later this year,” said CEO David Klein.

The combination of U.S. cannabis assets is expected to generate revenue and cost synergies within Canopy USA by leveraging the brands, routes to market and operations of the full U.S. cannabis ecosystem while eliminating redundancies across certain of the U.S., the company added.

Shares of Canopy Growth (CGC) were down over 1% premarket

Potential cannabis stocks to watch: Aurora Cannabis (ACB) -0.76%, SNDL (SNDL) -1%, Tilray Brands (TLRY) +0.54%, Organigram (OGI) +2.06%, and Cronos Group (CRON) -0.80%.