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Canopy Growth Announces Plan to Acquire Jetty Extracts

05/17/2022

On May 17, 2022, Canopy Growth Corporation and Lemurian, Inc. (Jetty), a California-based producer of cannabis extracts and pioneer of clean vape technology, announced they entered into definitive agreements providing Canopy Growth, by way of a wholly-owned subsidiary, the right to acquire, upon federal permissibility of THC in the U.S. or earlier at Canopy Growth’s election, up to 100% of the outstanding capital stock of Jetty.

The agreements are structured as two separate option agreements whereby Canopy Growth will make aggregate upfront payments in the amount of approximately US$69 million payable through a combination of cash and Canopy Growth common shares in exchange for approximately 75% of the equity interests in Jetty, subject to certain adjustments. Upon exercise of the rights to acquire up to 100% of the equity interests in Jetty, Canopy Growth will make an additional payment to be satisfied through a combination of cash and Canopy Growth common shares.

Cassels is acting as Canadian legal counsel to Canopy Growth.

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RELATED EXPERTISE: Securities | Mergers & Acquisitions | Cannabis