Canopy Growth Corporation (TSX: WEED) announced on May 14th that the company has entered into a definitive agreement to acquire the remaining 33% of BC Tweed Joint Venture Inc. (BC TWEED). Canopy Growth will issue C$374 million worth of shares to the BC Tweed shareholders in exchange for the remaining shares.
This issuance is based on the average price of each common share over a 20 day period that ended on May 11th.
The issued payment will be portioned out over a period of over four years and are subject to change depending on whether or not the company achieves certain milestones.
This acquisition will also result in both of the world’s largest cannabis cultivation facilities being fully controlled and owned by Canopy Growth.
WEED stock value increased an immediate 8.65% on the date of the announcement, and closed on the 14th to a 6.68% increase in value.
On May 15th, the day after the news of the definitive agreement with BC Tweed, the stock closed to no change.