SMITHS FALLS, ON and
NEW YORK, Oct. 1, 2020 /PRNewswire/ - Canopy Growth
Corporation ("Canopy Growth") (TSX:WEED) (NYSE:CGC) and Acreage
Holdings, Inc. (CSE:ACRG.A.U) (CSE: ACRG.B.U), (OTC: ACRHF) (OTC:
ACRDF) announced today that following the implementation of their
amended arrangement, Acreage has developed a plan to market Canopy
Growth's diverse beverage portfolio in the United States.
Leading with legal adult-use markets in Illinois and California, Acreage anticipates launching
Canopy Growth's select, sessionable THC beverage formulations in
summer 2021. In addition to selling products in its own
dispensaries, Acreage will access existing distribution channels
through strategic corporate relationships.
"We have had an incredibly successful introduction into the
Canadian cannabis-infused beverage industry with over 1.7 million
cans of our THC-infused RTD beverages, like Tweed's Houndstooth
& Soda and Bakerstreet & Ginger sold to date,"
shared Canopy Growth CEO, David
Klein. "We introduced a new product category to cannabis
consumers that we knew had the potential to disrupt one of the most
mature industries and since launching in Canada, Canopy Growth now owns 5 of the top 6
SKUs in the beverage category with a 74% market share. We are
excited for Canopy's beverages to be introduced to the U.S. market
"We see THC-infused beverages as a game-changer in U.S.
cannabis, and we are excited to launch Canopy Growth's unique
beverage offerings to our core markets offering the greatest growth
potential next year," said Bill Van
Faasen, Interim CEO of Acreage Holdings. "We are already
working on our beverage production capabilities, and look forward
to tapping the wealth of experience and research Canopy can offer
following its successful entry in the category last year."
The Companies look forward to bringing a sessionable infused
beverage offering to U.S. consumers that will more closely liken
itself to current beverage-alcohol serving sizes.
Here's to Future (Infused U.S.) Growth
About Canopy Growth Corporation
(TSX:WEED, NYSE:CGC) is a world-leading diversified cannabis, hemp
and cannabis device company, offering distinct brands and curated
cannabis varieties in dried, oil and Softgel capsule forms, as well
as medical devices through Canopy Growth's subsidiary, Storz &
Bickel GMbH & Co. KG. From product and process innovation to
market execution, Canopy Growth is driven by a passion for
leadership and a commitment to building a world-class cannabis
company one product, site and country at a time.
Canopy Growth's medical division, Spectrum Therapeutics is
proudly dedicated to educating healthcare practitioners, conducting
robust clinical research, and furthering the public's understanding
of cannabis, and has devoted millions of dollars toward cutting
edge, commercializable research and IP development. Spectrum
Therapeutics sells a range of full-spectrum products using its
colour-coded classification Spectrum system as well as single
cannabinoid Dronabinol under the brand Bionorica Ethics.
Canopy Growth operates retail stores across Canada under its award-winning Tweed and Tokyo
Smoke banners. Tweed is a globally recognized cannabis brand which
has built a large and loyal following by focusing on quality
products and meaningful customer relationships.
From our historic public listing on the Toronto Stock Exchange
and New York Stock Exchange to our international expansion, pride
in advancing shareholder value through leadership is engrained in
all we do at Canopy Growth. Canopy Growth has established
partnerships with leading sector names including cannabis icons
Snoop Dogg and Seth Rogen, breeding
legends DNA Genetics and Green House Seeds, as well as lifestyle
guru Martha Stewart and Fortune 500
alcohol leader Constellation Brands, to name but a few. For more
information visit www.canopygrowth.com.
Headquartered in New York City, Acreage is a vertically
integrated, multi-state operator of cannabis licenses and assets
in the U.S. Acreage is dedicated to building and scaling operations
to create a seamless, consumer-focused branded cannabis
experience. Acreage debuted its national retail store brand, The
Botanist, in 2018, and its award-winning consumer brand, The
Botanist, in 2019.
On June 27, 2019, Acreage
implemented an arrangement under section 288 of the Business
Corporations Act (British
Columbia) with Canopy Growth, which was subsequently amended
on September 23, 2020. Pursuant to
the Amended Arrangement, upon the occurrence (or waiver by Canopy
Growth) of the Triggering Event, Canopy Growth will, subject to the
satisfaction or waiver of certain closing conditions, acquire all
of the issued and outstanding Fixed Shares on the basis of 0.3048
of a Canopy Growth Share per Fixed Share (following the automatic
conversion of the Fixed Multiple Shares and subject to adjustment
in accordance with the terms of the Arrangement Agreement.
In addition, Canopy Growth holds an option, exercisable at the
discretion of Canopy Growth, to acquire all of the issued and
outstanding Floating Shares at the time that Canopy Growth acquires
the Fixed Shares, for cash or Canopy Growth Shares, as Canopy
Growth may determine, at a price per Floating Share based upon the
30-day volume-weighted average trading price of the Floating Shares
on the CSE relative to the trading price of the Canopy Growth
Shares at the time of the occurrence or waiver of the Triggering
Event, subject to a minimum price of US$6.41 per Floating Share.
For more information about the Amended Arrangement please see
the Circular and the respective information circulars of each of
Acreage and Canopy Growth dated May 17,
2019, which are available on Acreage's and Canopy Growth's
respective profiles on SEDAR at www.sedar.com and filed with the
SEC on the EDGAR website at www.sec.gov. For additional information
regarding Canopy Growth, please see Canopy Growth's profile on
SEDAR at www.sedar.com.
Notice Regarding Forward Looking Statements
release contains "forward-looking statements" and "forward-looking
information" within the meaning of applicable U.S. and Canadian
securities laws (collectively, "forward-looking statements"), which
involve certain known and unknown risks and uncertainties.
Forward-looking statements predict or describe our future
operations, business plans, business and investment strategies and
the performance of our investments. These forward-looking
statements are generally identified by their use of such terms and
phrases as "intend," "goal," "strategy," "estimate," "expect,"
"project," "projections," "forecasts," "plans," "seeks,"
"anticipates," "potential," "proposed," "will," "should," "could,"
"would," "may," "likely," "designed to," "foreseeable future,"
"believe," "scheduled" and other similar expressions. You are
cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date the statement was made.
Forward–looking statements are necessarily based upon a
number of estimates and assumptions that, while considered
reasonable by management, are inherently subject to significant
business, economic and competitive risks, financial results,
results, performance or achievements expressed or implied by those
forward–looking statements and the forward–looking statements are
not guarantees of future performance. Accordingly, there are
or will be important factors that could cause actual outcomes or
results to differ materially from those indicated in these
statements. A discussion of some of the material factors applicable
to Canopy Growth Corporation ("Canopy") can be found under the
section entitled "Risk Factors" in Canopy's Annual Report on Form
10-K for the year ended March 31, 2020, filed with the
Securities and Exchange Commission and with applicable Canadian
securities regulators, as such factors may be further updated from
time to time in its periodic filings with the Securities and
Exchange Commission and with applicable Canadian securities
regulators, which can be accessed at www.sec.gov/edgar and
www.sedar.com, respectively. These factors should not be
construed as exhaustive and should be read in conjunction with the
other cautionary statements that are included in this press release
and in the filings. Any forward–looking statement included in this
press release is made as of the date of this press release and,
except as required by law, Canopy disclaims any
obligation to update or revise any forward– looking
statement. Readers are cautioned not to put undue reliance on
any forward–looking statement. Forward-looking statements contained
in this press release are expressly qualified by this cautionary
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SOURCE Canopy Growth Corporation