Oct 14 (Reuters) – Canada’s Canopy Growth Corp (WEED.TO) stated on Thursday it could purchase weed gummies maker Wana Brands for $297.5 million, because the world’s greatest pot producer appears to be like to broaden within the U.S. hashish market.
Canadian pot producers are cross-border expansion, because the business has garnered investor curiosity with some U.S. states legalizing pot and on elevated expectations for federal marijuana reform.
Demand for pot edibles comparable to gummies has risen throughout the pandemic, as individuals caught at dwelling flip to cannabis-related merchandise for rest and leisure.
Wana sells gummies within the U.S. state of Colorado and licenses its mental property to companions who manufacture, distribute and promote Wana-branded gummies in states together with California, Arizona, Illinois, Michigan and Florida.
The acquisition will present Canopy entry to Wana’s vertically built-in facility in Colorado and its licensing division, the corporate stated, including that it could proceed working independently within the state till the deal closes.
The transaction is structured as three separate choice agreements permitting Canopy Growth a name choice to accumulate 100% of the membership pursuits in every Wana entity, the corporate stated in its assertion.
Editing by Vinay Dwivedi