Pot producer Canopy rises on deal to fast-track U.S. market entry

Acreage Holdings

25/10/2022 13:47

** U.S.-listed shares of Canopy Growth Corp  CGC.O  up 5.7%
at $2.41 premarket as Canadian cannabis co looks to accelerate
U.S. market entry
    ** 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
    ** But those gains have since waned as CGC shares have
fallen ~16% in Oct and ~74% YTD through Mon close
 (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))