Refile: UPDATE 1-Pot producer Canopy sets up holding co for speedy U.S. market entry

Acreage Holdings

25/10/2022 12:34

(Corrects to Tuesday from Monday in paragraph 5)
       Oct 25 (Reuters) - Top Canadian cannabis producer Canopy
Growth Corp  WEED.TO  said on Tuesday it was fast-tracking its
entry into the United States by creating a holding company for
its interest in U.S. partners Acreage Holdings Inc  ACRGau.CD ,
Wana and Jetty.
    Canopy's U.S. listed shares rose 6.11% to $2.43 in premarket
trade, with the deal expected to give the Canadian company a
leading market share in the United States as soon as legally
possible.
    Canopy will not directly benefit from the transactions right
away, as Canadian companies that grow or sell marijuana cannot
do so in the United States, where weed is classified a scheduled
narcotic.
    However, with U.S. president Joe Biden asking for a review
of that classification earlier this month, a change in
legislation could allow Canopy to operate in the country
directly.  urn:newsml:reuters.com:*:nL1N31726A
    In anticipation of those changes, Canopy on Tuesday outlined
a complicated holding co structure to set up Canopy USA LLC.
    Canopy will own non-voting shares in Canopy USA, which in
turn will begin taking over Acreage, Wana and the other brands
by using Canopy shares as currency.
 (Reporting by Shariq Khan; Editing by Savio D'Souza)
 ((Shariq.Khan@thomsonreuters.com; Twitter: @shariqrtrs;))