SMITHS FALLS, ONTARIO May 7, 2024– Canopy Growth Corporation (“Canopy Growth” or the “Company”) (TSX: WEED) (NASDAQ: CGC) today confirmed that Canopy USA, LLC (“Canopy USA”) has exercised the options to acquire Wana and Jetty (each as defined below).
The exercise of these options is a critical next step to enable Canopy USA to fulfill its intent to establish a leading, brand-focused powerhouse. It is also expected that once completed, these acquisitions will enable Canopy USA to realize compelling financial benefits, including the ability to drive revenue growth, and realize cost synergies across the Canopy USA ecosystem.
“With these acquisitions now triggered, Canopy USA has taken a crucial step forward in bringing together these high potential businesses and will soon be able to demonstrate the full potential of this ecosystem across the U.S. cannabis market,” said David Klein, Chief Executive Officer of Canopy Growth. “In addition to the positive signals we’re seeing on near term regulatory reform in the U.S., there’s significant potential in putting together leading brands like Wana and Jetty, and we’re excited to see how these brands can collaborate to become even stronger”.
There is no additional consideration to be paid by Canopy USA for the exercise of the options to acquire each of:
- Wana – Wana is a leading cannabis edibles brand in North America and is vertically integrated in Colorado in addition to having a rapidly growing licensing division across 15 additional U.S. states and territories. With a scalable business model, Wana has built a major position in the gummies category, which is one of the fastest growing edibles segments.[1] Backed by a robust pipeline of new consumer focused products, Wana continues to enter new markets and capture consumers looking for high-quality products that deliver against desired need states.
- Jetty – Jetty is a California-based producer of high-quality cannabis extracts and pioneer of clean vape technology. Jetty pioneers the latest technology to create industry-leading extracts including award-winning solventless vapes, live resin vapes, and other products. The brand’s products are available in California, Colorado, New York and New Jersey, and according to market research firm BDSA, Jetty Solventless vapes ranked as the #1 National Live Rosin vape brand2. Supported by nine years of operations, Jetty continues to define the vape category and is primed to further scale its high-quality products nationally.
The closing of the acquisition of each of Wana Wellness, LLC, The CIMA Group, LLC and Mountain High Products, LLC (collectively, “Wana”) and Lemurian, Inc. (“Jetty”) is subject to certain customary closing conditions, including receipt of regulatory approvals. Following the initial closing, Canopy USA will own 100% of the outstanding equity interests in Wana and approximately 75% of the outstanding shares of Jetty.
About Canopy Growth
Canopy Growth is a leading North American cannabis and consumer packaged goods (“CPG”) company dedicated to unleashing the power of cannabis to improve lives.
Through an unwavering commitment to our consumers, Canopy Growth delivers innovative products with a focus on premium and mainstream cannabis brands including Doja, 7ACRES, Tweed, and Deep Space. Canopy Growth’s CPG portfolio features gourmet wellness products by Martha Stewart CBD, and category defining vaporizer technology made in Germany by Storz & Bickel.
Canopy Growth has also established a comprehensive ecosystem to realize the opportunities presented by the U.S. THC market through Canopy USA’s rights to Acreage Holdings, Inc. (“Acreage”), a vertically integrated multi-state cannabis operator with principal operations in densely populated states across the Northeast, as well as Wana Brands, a leading cannabis edible brand in North America, and Jetty Extracts, a California-based producer of high- quality cannabis extracts and pioneer of clean vape technology.
Beyond its world-class products, Canopy Growth is leading the industry forward through a commitment to social equity, responsible use, and community reinvestment – pioneering a future where cannabis is understood and welcomed for its potential to help achieve greater well-being and life enhancement.
For more information visit www.canopygrowth.com.
