Canopy Growth Seeking Shareholder Approval For Canopy USA -- MarketWatch

Canopy Growth Corp. (CGC) (CA:WEED) said Friday it plans to seek approval from shareholders for a plan to close its acquisitions of cannabis-touching, U.S.-based businesses under the Canopy USA name. The Canadian cannabis company said it expects to file a definitive proxy with the SEC for Canopy USA on or about Feb. 13 for an April 12 shareholder vote on the structure. "Canopy USA is advancing and following our shareholder vote will be able to move forward with completing its acquisitions of Jetty, Wana, and Acreage," said CEO David Klein, in an emailed statement. Klein was referring to the U.S. THC businesses Jetty extract, Wana edibles, and Acreage cannabis, which will be combined with Canopy Growth's 17% stake in TerrAscend (CA:TSND). Canopy Growth said the Canopy USA structure would satisfy Nasdaq requirements, which for now prohibit plant-touching companies to list on their exchanges because cannabis remains a Schedule I drug under federal law. Canopy Growth plans to report the financials of Canopy USA on a deconsolidated basis as a "non-controlling interest" in Canopy USA, the company said. Canopy Growth's stock was up by 0.2% in premarket trading. It's not immediately clear if the SEC has OK'd the plan. Canopy announced the news as it reported earnings for its fiscal third quarter.

-Steve Gelsi

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February 09, 2024 07:34 ET (12:34 GMT)

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