Canada’s Canopy Growth is shut to a deal to purchase New York-based marijuana multistate operator Acreage Holdings, a number of sources, together with CNBC and Bloomberg, reported Wednesday.
If true, it will be the primary cross-border deal involving a Canadian marijuana licensed firm shopping for a non-hemp U.S. multistate operator.
It isn’t clear at present how the Canadian firm might purchase a U.S.-based agency and nonetheless keep its New York Stock Exchange (NYSE) and/or Toronto Stock Exchange listings due to the complicated buying and selling guidelines round cannabis.
For instance, the TSX prohibits corporations listed on its trade from having cannabis belongings in nations the place marijuana is federally unlawful, such because the United States.
Canopy, based mostly in Smiths Falls, Ontario, trades on each the New York Stock Exchange (CGC) and the Toronto Stock Exchange (WEED).
Acreage trades as ACRG.U on the Canadian Securities Exchange, the place the TSX rule doesn’t apply.
Acreage was buying and selling $2 larger on the finish of buying and selling April 17 in contrast with the earlier shut.
Neither Acreage nor Canopy might be reached instantly for remark.
Marijuana Business Daily will probably be overlaying this deal because it unfolds.
Read our ongoing protection of Canopy Growth and Acreage Holdings.
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