Canopy USA closes in on acquisition of Acreage Holdings

Acreage Holdings, Inc., a vertically integrated, multi-state operator of cannabis cultivation and retailing facilities in the U.S., today reported a series of corporate actions, including

• The exercise of the call option to acquire all of the issued and outstanding Class E subordinate voting ‎shares of the Company in accordance with the arrangement agreement between Acreage and Canopy Growth Corporation dated April 18, 2019, as amended, and
• The execution of an amended and restated credit agreement with a new syndicate of lenders, including 11065220 Canada Inc.

Notice of the Call Option was delivered to the Company initiating the acquisition of all issued and outstanding Fixed Shares. The Fixed Share Acquisition is anticipated to occur immediately after the acquisition of the Class D subordinate voting shares of Acreage pursuant to the plan of arrangement under the Business Corporations Act in accordance with the arrangement agreement dated October 24, 2022, as amended, among the Company, Canopy and Canopy USA and together with the Fixed Share Acquisition. Upon the closing of the Acquisitions, Canopy USA will own 100% of the issued and outstanding shares of Acreage. Closing of the Acquisitions remains subject to completion of the conditions set forth in the Fixed Share Arrangement Agreement and Floating Share Arrangement Agreement. The Company anticipates the Acquisitions will close during the first half of 2025 following receipt of required regulatory approvals.

“This is a transformative moment which reflects the determination of our partners and team to deliver a clear path for growth and look forward to this next step in Acreage’s journey as part of the Canopy USA ecosystem,” said Dennis Curran, Chief Executive Officer. “The debt restructuring and option exercise to commence Canopy USA’s acquisition of the Company, combined with our operational restructuring and our focus on reduced costs, should enable us to reach our potential and we are especially excited about Acreage’s opportunities in Ohio, Pennsylvania, New York, and New Jersey.”

“The Amended and Restated Credit Facility is anticipated to allow us to improve cash flows,” said Philip Himmelstein, Acreage’s interim Chief Financial Officer, “with this amendment and the restatement of financial covenants and remediation of defaults, we are well-positioned to succeed in our core markets as we continue to evaluate all options for raising capital and improving cash flow and profitability.”

For more Illinois cannabis industry news, visit here.

To find cannabis-friendly events in Illinois, visit here.

For Illinois News Joint reviews, visit here.

For more information on News Joint Bar Service, visit here.

For News Joint Printing services, click here.