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Canopy Growth to acquire IP and other assets of Colorado-based hemp company Ebbu

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Canadian pot company Canopy Growth Corp. said Monday it has agreed to acquire the assets of Colorado-based Ebbu Inc., a hemp research company, for CAD25 million plus 6.2 million shares. The deal will "complement and accelerate multiple core verticals operating under Canopy Growth's group of companies," Canopy said in a statement. Canopy will take over IP and research and development conducted by Ebbu for its hemp and THC-rich cannabis genetic breeding program and its cannabis-infused beverage capabilities. The company is expecting to cut the cost of CBD production using Ebbu's IP. The news comes just two days before Canada fully legalizes cannabis on Oct. 17. The deal is expected to close in November, subject to regulatory approvals by the TSE and NYSE. Shares rose 2.8% premarket and have gained 110.5% in 2018, while the S&P 500 has gained 3.5%.

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