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Canopy Buys Acreage for $3.4 Billion in Cross-Border Pot Deal

April 18, 2019, 1:43 PM

Canopy Growth Corp. agreed to buy Acreage Holdings Inc. for $3.4 billion in a cross-border cannabis deal that’s conditional on the U.S. eventually legalizing pot for recreational use.

Canopy, the world’s largest pot company, will initially pay $300 million in cash to shareholders of New York-based Acreage, the companies said in a release April 18. Shareholders will receive a further 0.5818 of a Canopy share when cannabis becomes federally legal in the U.S., representing a 42 percent premium over Acreage’s 30-day average price.

Acreage, which boasts former U.S. House Speaker John Boehner and former Canadian Prime Minister Brian Mulroney as...

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