“We are continuing to try to figure out where the puck is going”
A week ago, the cannabis industry rumbled following Canopy Growth Corp.’s (WEED.TO 3.41%) plans to acquire the right to buy U.S. cannabis operator Acreage Holdings Inc. (ACRGu.CD) for US$3.4 billion, the first major deal between a Canadian cannabis player and a U.S. counterpart.
Prior to Canopy’s blockbuster announcement, Canadian pot companies that traded on the Toronto Stock Exchange or the New York Stock Exchange were effectively shut out from owning or operating any U.S. assets due to restrictions put in place by the exchanges.
Canopy was able to pull the trigger by making most of the purchase, paid in the Smiths Falls, Ont.-firm’s shares, contingent on cannabis becoming legal at the federal level in the U.S.
Acreage’s CEO Kevin Murphy told BNN Bloomberg the deal will likely be completed once the Strengthening the Tenth Amendment Through Entrusting States (STATES) Act is passed by U.S. legislators, which would allow states to craft their own policies on cannabis.
Canopy’s deal effectively changes the game for Canadian pot companies, which now appear to have an established pathway into the world’s biggest cannabis market.
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