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Canopy USA, the U.S.-domiciled holding company of Canadian cannabis company Canopy Growth Corp., exercised its options to acquire Jetty Extracts, a California-based extraction brand and vape technology company, and Wana Brands, a Colorado-headquartered edibles manufacturer.
David Klein, CEO of Smiths Falls, Ontario-based Canopy Growth Corp., said in a news release that bringing the companies together will “demonstrate the full potential of this ecosystem across the U.S. cannabis market.”
“In addition to the positive signals we’re seeing on near term regulatory reform in the U.S., there’s significant potential in putting together leading brands like Wana and Jetty, and we’re excited to see how these brands can collaborate to become even stronger,” Klein continued in a statement.
Canopy shareholders voted 95.5% in April in favor of a new share structure to proceed with the acquisitions.
The Canopy USA plan has drawn opposition from the Nasdaq stock exchange and U.S. Securities and Exchange Commission.
Canopy entered into agreements to acquire Wana for $297.5 million and Jetty for at least $69 million in 2021 and 2022, respectively. (Wana says that transaction is now valued at $350 million.)
Both deals are contingent on the United States legalizing marijuana at the federal level.
