Canopy Growth completes acquisition of Wana edibles brand

Canopy Growth has completed the acquisition of Wana, acquiring 100 % of the cannabis-based edibles company and its subsidiaries, Wana Wellness, The CIMA Group, and Mountain High Products.

With this second major acquisition in less than six months, the Canadian cannabis giant is consolidating its position in the U.S. cannabis market.

Canopy's U.S. subsidiary announced the acquisition today, hoping that, along with the recent integration of Jetty and of Acreage Holdings, it will be able to «generate significant financial benefits, including revenue growth and cost synergies across the entire Canopy USA ecosystem.».

The company's relationship with Wana has expanded in recent years, as it had initially announced its intention to acquire the company in 2021, but that depended on the federal legalization of cannabis in the United States, or on when companies involved in the cannabis industry might be listed on major U.S. stock exchanges.

At the time, in exchange for entering into the agreement, Canopy made an initial payment of $297.5 million to Wana, but this did not grant it any voting rights or economic interest in the company, meaning that it essentially operated completely independently.

In May 2023, Canopy announced new agreements with Wana that gave it control over all distribution, marketing, and sales of cannabis-infused edibles from the brand Wana in Canada.

Later that year, Wana’s products were launched on the Canadian market by Spectrum Therapeutics, its medical cannabis division.

The final acquisition of Wana comes just a few months after Canopy acquired a 75% stake in Lemurian, Inc. (also known as Jetty, a cannabis extract brand) in June.

« »With Wana now part of Canopy USA alongside Jetty, we’re gaining momentum while reinforcing our commitment to building a diversified portfolio of leading brands in the U.S. cannabis market,” said David Klein, CEO of Canopy Growth and a member of the Canopy USA board of directors.

«This acquisition marks an important milestone in Canopy USA's strategy and opens up new growth opportunities in the legal markets and hemp-derived products across the United States.»

Joe Hodas, president of Wana Brands, added, «This acquisition marks an exciting new chapter for Canopy USA, as we combine Wana’s expertise in innovative edibles with Jetty’s pioneering developments in vaping and extraction products.»