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Activist Marcato Opposes Canopy Growth’s Takeover of Acreage

May 6, 2019, 2:24 PM

Activist investor Marcato Capital Management said it plans to vote against a proposed $3.4 billion takeover of Acreage Holdings Inc. by Canopy Growth Corp., arguing the transaction undervalues the U.S. marijuana producer.

The San Francisco-based hedge fund, which owns 2.7 percent of Acreage, said in a letter to the company’s board May 6 it would prefer Acreage to remain independent.

If Acreage were to pursue a sale, it should invite Canopy to participate in an auction alongside other major spirits, beer, beverage, tobacco, cannabis, and consumer companies, Marcato said.

“We believe enterprise values of cannabis companies will skyrocket upon the ...

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