Canopy Growth Corporation CEO Bruce Linton and CEO of Acreage Holdings Kevin Murphy have recently expressed their great ambitions for their industry changing merger proposal in the rapidly growing legal cannabis market. The strongest positive for Acreage in this deal is of course Canopy’s ever expanding global reach. The company is operating over 60 clinical activities, has ownership of almost 100 patents and has another 200 patents filed ready to roll out. Currently the Canopy is in the process of creating a larger IP for the cannabis industry as a whole.
In a recent interview both executives went into great details about their current positions and the state of their potential merger that is if shareholders and regulators approve the move. With a merger of this magnitude the potential for growth and profits as a combined company would be huge for investors. Acreage Holdings Kevin Murphy said “Every smart business man knows that they need good partnership to lead a good prosperity, from our advantage point, we were humble enough to know that being the dominant player… that we wanted ultimately to be a global player.”
But when can we expect shareholders to vote on this strategic move? Well it has been discussed that shareholders will have the opportunity to vote in the latter half of this month and the merger itself is a bold move based on the full federal decriminalization of cannabis over the course of the next 5-10 years. If the deal passes shareholder votes and regulator checks, Canopy will officially acquire Acreage Holdings, which would give the company access to 20 new state licenses, and Canopy have said that they will be paying shareholders of Acreage $300 Million USD.
This huge merger comes at a time where the global cannabis market, and legalization for cannabis is really taking off, with projections for the market to show growth of upwards of 24% in the next 4-5 years. Ceo of Canopy Bruce Linton said in a note “The rest of the world after Canada is just heating up, so we need to be able to turn our activities up in Europe. And when we spend the money, Kevin and his team have access to it,” he continued to say. “So then they end up having a deeper pool of benefits that we can license down for no value.” Both companies stand to gain a lot by merging together, and both Acreage and Canopy are looking to work together to increase there already strong foundations in the cannabis industry and expand on that.
Cameron Brown – IEC International