Canopy Growth acquires Ebbu, a move that has seemingly put the cannabis company into the green today. Currently, the stock is at $69.19—up over 6.5% since the weekend. It's a good start to the week and may only get better as adult-use cannabis legalization kicks off across Canada this week.
So what's spurring on these stocks?
Canopy Growth Acquires Ebbu Hemp
Canopy Growth (TSX:WEED) announced today that it has signed a deal to acquire Ebbu Inc—a hemp researcher based in Colorado. The deal is estimated to be worth $425 million.
Terms of the deal are as follows:
- Canopy will pay $25 million in cash
- It will issue 6,221,21o shares to Ebbu
- If particular scientific-related milestones are achieved within two years of the deal closing, Canopy will pay Ebbu an additional $100 million
Canopy Growth Acquires Ebbu
The acquisition will help Canopy Growth's hemp and high-level THC breeding program.
"Beyond the technological edge this transaction provides, we are pursuing this acquisition because Canopy shares Ebbu's core ethos of building consumer trust," said Mark Zekulin, Canopy's co-chief executive and president.
He furthered:
"We collectively believe consumer trust is achieved by driving the scientific agenda needed to build predictable, repeatable outcomes and layering on brand power."
>> Cannabis Penny Stocks: Canadian Cannabis Stocks Rising Today Just Before National Legalization
Other News
Canopy Growth has been moving at a fast pace. Last week, the Smith Falls, Ontario-based grower disclosed that it had completed a legal transfer of cannabis-based products to one of its research partners in the United States.
On that occasion, Zekulin stated that "the United States presents a unique market opportunity.” The plan here is for Canopy to work in the market “through federally legal means and with the right partners,” in order to "create a US-based center of expertise.”
Other Acquisitions
And in other acquisition news, the cannabis industry is a wave of these right now.
MedMen (CSE:MMEN) and Chicago-based PharmaCann LLC announced a signing of an LOI on October 11th. The LOI is for MedMen to acquire PharmaCann in an all-stock transaction valued at $682 million.
Featured Image: Depositphotos/© Alexstar
