Stocktwits - U.S.-listed shares of Canopy Growth Corp. climbed over 1.5% on Monday after the cannabis company announced the completion of its acquisition of Acreage Holdings, marking a significant step in its expansion into the U.S. market.
The transaction transfers Acreage’s multi-state operations to Canopy USA, a subsidiary of Canopy Growth. This move consolidates Acreage’s presence in the Midwest and Northeast with Canopy’s existing U.S. portfolio, which includes leading cannabis brands Wana and Jetty.
Jetty owns and operates Jetty Extracts, a California-based producer of high-quality cannabis extracts and pioneer of clean vape technology, and Wana is a leading North American edibles brand.
Canopy’s leadership emphasized that integrating Acreage would unlock operational synergies, cost efficiencies, and a stronger foothold in state-legal cannabis markets across the U.S.
Acreage is a multi-state operator of cannabis cultivation and retailing facilities in the U.S., including its national retail store brand, The Botanist.
"Completing the acquisition of Acreage marks the final step in establishing Canopy USA as a unified platform which we believe offers significant upside as the Canopy USA portfolio of brands can now capitalize on the rapidly expanding U.S. cannabis market, independent of the need for federal legalization," said David Klein, CEO, Canopy Growth
The company is looking to grab its share of the U.S. cannabis market, projected to hit $50 billion by 2026, without necessarily needing to wait for federal legalization.
Retail sentiment around the stock improved to ‘neutral’ (48/100) from ‘bearish’ a day ago, and chatter increased with users anticipating more upside as the company consolidates its U.S. operations.
Originally founded as Tweed Marijuana Inc (TSX:WEED). in 2013, Canopy Growth Corporation was renamed in 2015 following a merger with Bedrocan Canada. It became the first federally regulated, licensed, publicly traded cannabis producer in North America.
However, due to increasing competition and pricing pressures in the retail cannabis market, the company decided to sell its 28 retail stores across Canada to focus more on its core production and distribution capabilities in Sept. 2022.
Despite the strategic shift, Canopy’s stock is down more than 24% year-to-date as it struggles to maintain sales.
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