Major Cannabis Acquisition to Close this Week
In late 2016, we reported on Canopy Growth’s (CGC.TO: TSX) (TWMJF: OTC) announced acquisition of medical cannabis producer Mettrum Health (MT.V: TSX Venture) (MQTRF: OTC).
Last week, the companies’ shareholders approved the all-stock acquisition valued at $430 million. Now, the deal needs to be approved by an Ontario Supreme Court Justice and it is likely to come into effect on January 31st.
The combination of the two businesses will create a globally diversified cannabis company that has six licensed facilities and a licensed production footprint of approximately 665,000 sq. ft. with significant acreage for expansion.
Under the terms of the agreement, Mettrum shareholders will receive 0.7132 common shares of Canopy Growth for each common share of Mettrum. Once completed, Mettrum shareholders are expected to own approximately 22.3% of the combined company.
Canopy Growth CEO Bruce Linton said, “We are delighted that the shareholders of Canopy...
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