Canopy Growth, a Canadian based cannabis company is moving into the American market relatively swiftly. According to CNBC, Canopy growth announced recently they are consolidating their US assets into a new holding company called Canopy USA. This new holding company will also house Acreage Holdings, Wana Brands and Jetty. Common stock holdings from Canopy will be transferred into new exchangeable shares.
This new merge into the US markets will likely save Canopy plenty of money when trying to inject into the booming United States market within the next few years. With the cannabis market expected to top roughly $50 billion by 2026 in the states alone, many expected this merger to come sooner.
“As the growth of the U.S. cannabis market continues rapidly at the state level, this strategy enables us to take control of our own destiny and capitalize on the once-in-a-generation opportunity in the largest cannabis market in the world,” said David Klein, CEO of Canopy Growth Corp. Canopy’s shares closed up 27% on Tuesday.
“We believe that the conversion of our ownership interest will maintain Constellation’s ability to realize the potential upside of our investment in Canopy,” said Constellation’s CEO and President Bill Newlands.
More on this story to come.
Read the whole article from CNBC here.