Canopy Growth pre-acquires Wana, America's largest edibles brand

Canopy Growth has reached an agreement to acquire Wana Brands, the largest brand of’edibles in the United States, as part of a $297 million transaction. Under the terms of the agreement, Canopy acquired the right to purchase Wana and its related entities once THC-based products are legalized at the federal level in the United States.

«As we build Canopy Growth into the world’s leading cannabis company, the acquisition of the premier brand of’edibles »Our expansion into the North American cannabis market will help strengthen our market position in Canada and the United States," said declared David Klein, CEO of Canopy Growth, in a press release.

Through a licensing agreement with the Ottawa-based Canadian company Indiva, Wana also controls the majority of the Canadian market for edible products.

«The right to acquire Wana provides us with another direct and significant pathway to the U.S. THC market, once federal authorization is obtained, and in Canada, we will add cannabinoid gummies to our portfolio of industry-leading brands. We are confident in the future growth of the edibles »and in the amazing opportunities offered by Wana."

In the United States, Canopy Growth offers hemp-derived CBD products through its brands wellness First & Free and Martha Stewart. In 2019, Canopy Growth announced an agreement granting it the right to acquire the U.S. multi-state cannabis operator Acreage Holdings. Canopy Growth also holds a contingent interest in TerraAscend, another multi-state operator based in the United States, which recently acquired Gage.

The agreement grants Canopy Growth the right to acquire 100% of the outstanding shares in Wana Brands and its affiliates Mountain High Products, Wana Wellness, and The Cima Group, as soon as THC is legalized by federal authorities in the U.S. market.

Upon exercise of the option, Canopy Growth will make an additional payment equal to 15% of the market value of each entity at the time of its acquisition. The two companies will continue to operate independently until the options are exercised.