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Canopy Growth Announces Option to Acquire Wana Brands, the #1 Cannabis Edibles Brand in North America


On October 14, 2021, Canopy Growth Corporation entered into definitive agreements providing Canopy Growth with the right, upon federal permissibility of THC in the U.S., to acquire 100% of the outstanding membership interest in Mountain High Products, LLC, Wana Wellness, LLC and The CIMA Group, LLC (collectively, Wana Brands).

Canopy Growth has a call option to acquire 100% of the membership interests in each entity. As consideration for entering into the agreements, Canopy Growth will make an upfront cash payment in the aggregate amount of US$297.5 million. Upon exercise of the right, Canopy Growth will make a payment equal to 15% of the fair market value of each entity at the time the option is exercised. As additional consideration, Canopy Growth may make additional deferred payments as of the 2.5 and 5-year anniversary, less certain deductions. At the option of Canopy Growth, all future payments may be satisfied in cash, shares or a combination thereof.

Cassels is acting as strategic and Canadian legal advisor to Canopy Growth.

This deal was profiled by Canadian Lawyer Magazine. Read more here.

RELATED EXPERTISE: Securities | Mergers & Acquisitions | Cannabis