Canopy shares on fire after fast-track deal for U.S. cannabis market entry

Acreage Holdings

25/10/2022 16:13

(Updates, adds cannabis peer stock moves)
    ** U.S.-listed shares of Canopy Growth Corp  CGC.O  up 26.2%
at $2.89 as Canadian cannabis co looks to accelerate U.S. market
entry
    ** CGC set for biggest one-day pct gain since Aug 15, 2018,
if gains hold
    ** Canopy to acquire Acreage Holdings Inc  ACRGau.CD  and
set up holding co structure as Canopy USA LLC
    ** Canopy will own non-voting shares in new entity, but will
not directly benefit immediately, as marijuana remains illegal
in the U.S.
    ** Separately, beverage firm Constellation Brands  STZ.N 
announces plan to convert its existing ~36% ownership in Canopy
into new exchangeable shares  urn:newsml:reuters.com:*:nGNE2nNB9C
    ** Pot stocks rallied earlier this month after President Joe
Biden took steps to overhaul U.S. marijuana policy
    ** Still, CGC down ~67% YTD including move on Tues
    ** Meanwhile, shares of other pot cos also rise on the
session: Tilray  TLRY.O  15%, Aurora Cannabis  ACB.O  15%, SNDL
Inc (formerly Sundial Growers)  SNDL.O  13%, Hexo Corp  HEXO.O 
~4%, OrganiGram Holdings  OGI.O  7%
    ** U.S.-listed shares of Cronos Group  CRON.O  up 6% even
after co agrees to pay Ontario Securities Commission more than
$1 mln for accounting and control failures after being charged
by U.S. SEC
    ** Cannabis REIT Innovative Industrial Properties  IIPR.N 
up 5%
    ** Pot stock trackers ETFMG Alternative Harvest ETF  MJ.P 
and AdvisorShares Pure US Cannabis ETF  MSOS.P  up 9% and 5%,
respectively, on Tues
 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-332-219-1430))