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BRIEF-Canopy Growth Announces Plan To Acquire U.S. Cannabis Operator Acreage Holdings

Published 2019-04-18, 09:42 a/m
© Reuters.  BRIEF-Canopy Growth Announces Plan To Acquire U.S. Cannabis Operator Acreage Holdings
ACRGu
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April 18 (Reuters) - Acreage Holdings Inc ACRGu.CD :

* CANOPY GROWTH ANNOUNCES PLAN TO ACQUIRE LEADING U.S. MULTI-STATE CANNABIS OPERATOR, ACREAGE HOLDINGS

* ACREAGE HOLDINGS INC - AGGREGATE TOTAL PAYMENT OF US$300 MILLION OR APPROXIMATELY US$2.55 PER ACREAGE SUBORDINATE VOTING SHARE

* ACREAGE HOLDINGS INC - TRANSACTION IS VALUED AT APPROXIMATELY US$3.4 BILLION

* ACREAGE HOLDINGS - COS WILL ALSO EXECUTE LICENSING AGREEMENT GRANTING ACREAGE ACCESS TO CANOPY'S LINE-UP OF BRANDS SUCH AS TWEED AND TOKYO SMOKE

* ACREAGE HOLDINGS - HOLDERS OF SUBORDINATE VOTING SHARES OF ACREAGE WILL RECEIVE 0.5818 OF A COMMON SHARE OF CANOPY GROWTH FOR EACH ACREAGE SHARE HELD

* ACREAGE HOLDINGS INC - ACREAGE PRESIDENT, GEORGE ALLEN WILL DEPART COMPANY EFFECTIVELY IMMEDIATELY

* ACREAGE HOLDINGS INC - ACREAGE CHAIRMAN AND CEO KEVIN MURPHY WILL ASSUME DUTIES OF PRESIDENT

* ACREAGE HOLDINGS INC - UNDER TERMS OF AGREEMENT, CANOPY GROWTH WILL PAY UP-FRONT CASH PREMIUM TO ACREAGE HOLDERS

* ACREAGE HOLDINGS INC - WILL ALSO EXECUTE A LICENSING AGREEMENT GRANTING ACREAGE ACCESS TO CANOPY GROWTH'S BRANDS SUCH AS TWEED AND TOKYO SMOKE

* ACREAGE HOLDINGS INC - DUE TO SCOPE OF PROPOSED DEAL, CANOPY GROWTH AND CONSTELLATION BRANDS HAVE AMENDED INVESTOR RIGHTS AGREEMENT

* ACREAGE HOLDINGS INC - CONSTELLATION WILL CONTINUE TO MAINTAIN ITS CURRENT LEVEL OF REPRESENTATION ON CANOPY'S BOARD

* ACREAGE HOLDINGS INC - AGREEMENT INCLUDES TERMINATION FEE IN AMOUNT OF US$150 MILLION PAYABLE BY ACREAGE IN EVENT THAT TRANSACTION IS TERMINATED

* ACREAGE HOLDINGS - CONSTELLATION WOULD BE PERMITTED TO BUY UP TO 20 MILLION CANOPY SHARES IN OPEN MARKET PRIOR TO WARRANTS BEING EXERCISED OR TERMINATED

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