- Canopy Growth Corporation (WEED) has announced an agreement with Lemurian Inc. to acquire up to 100 per cent of Jetty
- Jetty has developed proprietary extraction technology for its vapes
- Canopy Growth needs to pay USD$69 million, with cash and common shares, for a 75 per cent interest
- A further payment, as yet to be finalized, will be required for Canopy to acquire the remaining 25 per cent of Jetty
- Canopy Growth Corporation (WEED) is down 4.38 per cent trading at $7.21 per share at 2:30 p.m.
Canopy Growth Corporation (WEED) has announced an agreement with Lemurian to acquire up to 100 per cent of Jetty.
Jetty is one of the top 10 cannabis brands in California and has reported strong financial growth over the past two years.
Jetty has developed proprietary extraction technology for its vapes that create a concentrate without any additives or filler.
The definitive agreements are split into two separate options.
Canopy Growth is required to make upfront payments USD$69 million which can be made up of cash and common shares in its capital. After this payment has been made it will own a 75 per cent interest in Jetty.
In order for Canopy Growth to own a 100 per cent interest, it needs to make an additional payment on top of the first option which has yet to be outlined.
Canopy Growth’s option is contingent on the federal permissibility of THC in the U.S.
“There are significant opportunities for Jetty to scale at the state-level across the U.S. by leveraging Canopy’s U.S. ecosystem, and we’re actively working on plans to bring the brand to the Canadian recreational market,” David Klein, CEO, Canopy Growth, said.
Canopy Growth Stock is down 4.38 per cent trading at $7.21 per share at 2:30 p.m.