Canopy Growth Corporation has entered into a definitive agreement to acquire The Supreme Cannabis Company, which owns 7ACRES in Tiverton for $435 million.
A release says the two companies have entered into a definitive arrangement agreement under which Canopy will acquire all of Supreme Cannabis’ issued and outstanding common shares.
Canopy says this will give it a, “strengthened brand portfolio including one of Canada’s leading premium brands, 7ACRES.”
It says, the acquisition, “Brings a premium, low-cost and scalable cultivation facility to Canopy’s production capabilities: Supreme Cannabis’ hybrid-greenhouse cultivation facility at Kincardine, Ontario has a demonstrated capability of consistently producing premium flower from sought-after strains at low cost with significant potential for scaling.”
They say the addition of Supreme Cannabis’ premium brands, 7ACRES and 7ACRES Craft Collective, complement Canopy’s current consumer offering and will strengthen Canopy’s brand portfolio, with both brands expected to continue to grow with further investment and expansion.
In a statement, Supreme Cannabis President and CEO Beena Goldenberg says, “This transaction is a testament to the value created by all the teams at Supreme and will be beneficial to all of our stakeholders.”
Goldberg adds, “We have been successful at delivering great products that achieved strong customer loyalty, and operating at levels of efficiency that are industry-leading. We have also built a highly sought-after premium brand in 7ACRES.”
Goldberg says, “Combining Supreme Cannabis with Canopy — a Canadian market leader with exposure to the United States presents a significant value creation opportunity for both companies. We look forward to working with Canopy to complete this transaction.”
Canopy CEO David Klein says in a statement, “As we continue to expand our leading brand portfolio, we’re excited to reach more consumers through Supreme’s premium brands and high-quality products, further solidifying Canopy’s market leadership.”
He adds, “Supreme’s deep commitment to superior genetics, top-tier cultivation and strict quality control, paired with Canopy’s leading consumer insights, advanced R&D and innovation capabilities, is expected to create a powerful combination that aligns with our strategic focus to generate growth with premium quality products across key categories.”
The transaction is anticipated to close at the end of June.
We are pleased to announce that we have entered into a definitive agreement with Canopy Growth $WEED, under which Canopy will acquire Supreme Cannabis, in a transaction valued at approximately $435 million on a fully-diluted basis. https://t.co/2FAxn3AKkd #FollowTheFire #FIRE pic.twitter.com/ErO6973xUl
— SUPREME. (@TheSupremeFIRE) April 8, 2021
