(Smiths Falls) Canopy Growth said Wednesday it has signed an agreement that will give it the right to acquire California-based cannabis company Jetty Extracts — if the United States legalizes the main ingredient in cannabis at the federal level.
Posted at 12:39 p.m.
The deal is structured as two separate option agreements that give a subsidiary of Canopy the option to acquire up to 100% of Jetty’s stock upon legalization, or if Canopy exercises its rights earlier.
Under the agreements, Canopy will make aggregate and upfront cash and common stock payments totaling approximately $69 million in exchange for a 75% equity interest in Jetty.
Once Canopy, based in Smiths Falls, Ontario, exercises its right to acquire the remaining interest, it will begin making additional payments in cash and common stock.
Until Canopy exercises its rights, the companies will operate independently of each other and Canopy and its subsidiary will not hold any economic interest or voting interest in Jetty.
California-based Jetty is known for making solvent-free vaping products, unrefined resin, small-batch concentrates, and infused pre-rolls. Canopy said the deal would allow it to bring these products to the Canadian market.