On June 4, 2024, Canopy Growth Corporation announced that the option to acquire all of the issued and outstanding Class E subordinate voting shares of Acreage Holdings, Inc. has been exercised in accordance with the terms of an arrangement agreement dated April 18, 2019, as amended, between Canopy Growth and Acreage. In connection with the arrangement agreement dated as of October 24, 2022, by and among Canopy Growth, Canopy USA, LLC, and Acreage, as amended, in respect of the Class D subordinate voting shares of Acreage, on closing, Canopy USA will acquire all of the shares of Acreage and Acreage will become a wholly-owned subsidiary of Canopy USA.
In addition, Canopy Growth acquired approximately US$99.8 million of Acreage’s outstanding debt from certain lenders in exchange for US$69.8 million in cash and the release of approximately US$30.1 million that was held in escrow pursuant to an option agreement dated November 15, 2022. Subsequently, Canopy Growth transferred approximately US$2.2 million of the acquired debt to the other Acreage lender and entered into a series of agreements whereby Canopy Growth acquired a call right over the lender’s US$45.6 million remaining interest in Acreage’s debt.
Cassels acted for Canopy Growth.