Canopy Growth Corporation announced its acquisition of The Supreme Cannabis Company, Inc. in a transaction valued at approximately $435 million.
The transaction is expected to provide several benefits to both Canopy and Supreme Cannabis shareholders. Notably, Canopy will possess a strengthened brand portfolio including one of Canada’s leading premium brands, 7ACRES.
Brand growth is anticipated with distribution supported by Canopy’s sales and distribution network as well as its consumer insights and R&D capabilities. In addition to receiving a market premium, Supreme Cannabis shareholders “will also benefit from Canopy’s US CBD business and conditional positioning for continued exposure to the U.S. market expansion,” states the press release.
Further value will be derived through the scalable Kincardine, Ont. hybrid-greenhouse cultivation facility, which has a demonstrated record of producing premium flower at low cost.
Combined pro forma market share is estimated to be 23.3% of the premium flower segment in Ontario and 21.4% in British Columbia.
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