CGC Stock Down 2%: Voting Opens for $3.4B Acquisition of Acreage Holdings

CGC stock

Now is a time for shareholders of Canopy Growth (TSX:WEED) (NYSE:CGC) and Acreage Holdings (OTCQX:ACRGF) to show their support for the two cannabis companies. Earlier today, the companies reminded the market of their proposed merger, telling shareholders that voting on it has commenced. Both CGC stock and ACRGF stock are currently in the red zone.

Here’s everything we know.

CGC Stock and ACRGF Take Hit After Voting Commences

On June 14, Canopy Growth reminded shareholders to support the proposed merger of the two companies; Acreage Holdings reminded its own shareholders of the same thing. Back in April, Canopy Growth announced it’ll acquire Acreage for more than $3.4 billion, subject to whether the US legalizes cannabis within the next seven years. CGC stock increased nearly 10% on the news, but market confidence didn’t last long. The following month, CGC stock suffered a few blows, credited to a lack of confidence in the Canopy-Acreage deal.

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A month has passed since then, but it seems there’s still a lack of confidence in the deal. With voting on the mega-merger opening today for shareholders—the voting process will close June 17—the two companies are reminding shareholders to support the deal. It would seem that, however, if shareholders were confident in the deal, which would see CGC pay Acreage shareholders $300 million, shareholders wouldn’t have had to have been reminded that voting started today—they would know.

Whether shareholders were aware that voting is now open or not, neither stock looks as attractive as one might have suspected them to look today.

According to Yahoo Finance, CGC stock is trading at $40.95 on the New York Stock Exchange, which puts CGC stock down 2.13%. Meanwhile, ACRGF stock is down 0.55%.

Takeaway

Are you a shareholder of either company? If so, are you planning on voting in favor of the Canopy-Acreage deal?

Let us know your thoughts in the comments below!

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