Canopy Growth looks to grow U.S. business with new holding company structure

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Canopy Growth Corp. says it is looking to grow its U.S. business with the creation of a new U.S.-domiciled company that will hold its U.S. cannabis investments.

The company says the establishment of Canopy USA LLC will enable it to exercise its rights to acquire U.S. cannabis companies Acreage, Wanna and Jetty.

In addition, Canopy USA will control a conditional ownership position in U.S. cannabis company TerrAscend Corp. Canopy CEO David Klein says the strategy will help the company's investors and brands realize value in the near term while positioning it for profitable growth and a fast start upon U.S. federal permissibility.

In connection with the creation of Canopy USA, Canopy will hold a shareholder vote on the creation of a new class of non-voting exchangeable shares. It says the exchangeable shares will provide shareholders that may otherwise have concerns about the company's exposure to the U.S. cannabis market with an opportunity to retain an interest in Canopy through a non-voting and non-participating share.

 

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