Canopy-Acreage Deal Too Risky to Be Replicated, Pot CEOs Say

May 14, 2019, 8:26 PM

Pot companies say they’re not interested in replicating Canopy Growth Corp.’s deal for Acreage Holdings Inc., arguing that a structure that depends on U.S. legalization creates risks for both sides.

Canopy said last month that it will buy Acreage for $3.4 billion in a deal conditional on the U.S. legalizing marijuana at the federal level in the next 90 months. The value of the cash-and-stock offer has fluctuated since then and is currently worth about $29 a share. That’s about $10 above Acreage’s current stock price, indicating investors aren’t convinced the deal will get done.

The structure doesn’t appeal because ...

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