Canopy Growth announces shareholder approval in connection with the proposed acquisition of Acreage & provides update on American hemp and CBD operations

canopy growth
Posted on: June 20, 2019

Canopy Growth Corporation (“Canopy Growth” or the “Company”) (TSX:WEED, NYSE:CGC) is pleased to announce that, at a special meeting of the Company’s shareholders (the “Meeting”) held earlier today, the Company’s shareholders voted overwhelmingly in favour of the resolution (the “Canopy Shareholder Resolution”) approving the issuance of common shares of Canopy Growth and certain amendments to certain outstanding Company warrants in connection with the Company’s previously announced proposed acquisition (the “Transaction”) of Acreage Holdings, Inc. (“Acreage”).

The Canopy Shareholder Resolution was approved by approximately 99.05% of votes cast by disinterested Canopy Growth shareholders either in person or represented by proxy at the Meeting, in accordance with the requirements of the Toronto Stock Exchange. The report of voting results will be made available under Canopy Growth’s profile on SEDAR at www.sedar.com.

In addition to the approval by Canopy Growth shareholders, Acreage shareholders approved the Transaction at a special meeting of shareholders held simultaneously today.

“On behalf of Canopy Growth, I thank the shareholders of both companies for their vote of confidence in this historic transaction,” said Bruce Linton, Chairman & Co-CEO, Canopy Growth. “Completion of the Transaction is intended to position us to efficiently and effectively enter the US cannabis market once federally permissible. Alongside our international market strategies and US Hemp strategy, we believe the acquisition of Acreage will be a key step in bolstering our position as a truly global company.”

Initial implementation of the Transaction is subject to approval by the Supreme Court of British Columbia and satisfaction of certain other closing conditions. Canopy Growth and Acreage expect the Transaction to be implemented on or about June 27, 2019. Completion of the Transaction is contingent on the occurrence or waiver, at Canopy Growth’s discretion, of changes in US federal law to permit the general cultivation, distribution, and possession of cannabis or to remove the regulation of such activities from the federal Laws of the United States. Details of the payment will be included in a subsequent press release.

Canopy Growth updates on its United States hemp and CBD operations:

The local Canopy Growth team, with staff in San Francisco, New York, Denver, Georgia and Washington, among other places, continues to advance the Company’s vision south of the border, with active owned or contracted hemp operations now in seven states: California, Colorado, Kentucky, New York, North Carolina, Oregon and Pennsylvania. Planting is currently underway, using a mixture of high-CBD varieties and high-fibre genetics that could supply the necessary raw material for large-scale, industrialized hemp-based products such as textiles, proteins and bioplastics.

When at full capacity, Canopy Growth’s American footprint, largely contracted with American farmers versus owned operations, will cover more than 4000 acres, (approximately 3268 US football fields – or, for Canadian readers, approximately 11,072 hockey rinks.) Nearly half of that entire farming platform will be located in New York State, which will include approximately 1,000 acres of high-CBD hemp, along with an additional 1,000 acres of high-fibre hemp growth.

As a complement to these active farm operations, Canopy Growth continues to explore appropriate locations for its own industrial scale processing and manufacturing plants, with the anticipation that the assets of Acreage  could also form a substantial part of the Company’s long-term strategic US platform, pending the finalization of the Transaction between Canopy Growth and Acreage.

Finally, through the work of its research subsidiary ebbu, based in Denver, Colorado, as well as its growing clinical team, the Company is squarely focused on bringing a new and unparalleled level of product quality, regulatory oversight, reliability and scientific rigour to the US CBD market.

With its substantial cash holdings and relentless drive to build its commercial portfolio in Canada, the United States and around the world – all while investing in research and development, innovation and educational activities -– Canopy Growth remains committed to leadership in the emerging cannabis space and to generating ever-increasing returns for its shareholders.

Here’s to Future Growth (south of the border).