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Canopy eyes U.S. expansion with weed gummies maker Wana Brands acquisition

Canopy Growth said on Thursday it would buy weed gummies maker Wana Brands for US$297.5 million, as the world s biggest pot producer looks to expand in the U.S. cannabis market.

"The categories that resonate the most with consumers, particularly in THC space are gummies and beverages, we continue to look at other ways of consumption but these two seem to be the ones that are taking off," Canopy chief executive officer David Klein told Reuters.

Tetrahydrocannabinol or THC is the ingredient in marijuana that gets you high .

Wana sells gummies in the U.S. state of Colorado and licenses its intellectual property to partners who manufacture, distribute and sell Wana-branded gummies in states including California, Arizona, Illinois, Michigan and Florida.

Canadian pot producers are looking at cross-border expansion, as the industry has garnered investor interest with some U.S. states legalizing pot and on increased expectations for federal marijuana reform.

"We remain more bullish than others in the regulatory front and feel that our ecosystem in the U.S. is strong enough to grow even without federal permissibility happening in the short term," Klein added.

U.S.-listed shares of Canopy, which are down 46% so far this year, rose nearly 2% to $13.55 in premarket trade.

The acquisition will provide Canopy access to Wana s vertically integrated facility in Colorado and its licensing division, the company said, adding that it would continue operating independently in the state until the deal closes.

The transaction is structured as three separate option agreements allowing Canopy Growth a call option to acquire 100% of the membership interests in each Wana entity, the company said in its statement.

UPDATED

A Danish man suspected of killing five people with a bow and arrow and possibly other weapons while randomly shooting at strangers in a small Norwegian town appears to have committed an act of terrorism, authorities in Norway said Thursday.

Saskatchewan has been battered by COVID-19 s fourth wave, struggling with a surge in cases and deaths and a health care system that is on the brink of being overwhelmed — a cautionary tale, the beginnings of which can be traced back to the summer when public health measures ceased, according to one expert.

A developing water crisis in Nunavut’s capital city, Iqaluit, is exposing just how precarious the drinking water situation can be for the city as residents are currently paying about $9 for a litre of bottled water while major grocery stores are selling out.

OPINION

Prime Minister Justin Trudeau’s can’t-delay campaign for historic change has produced a sloth-speed government with a cabinet yet to be named, an idled bureaucracy waiting for orders and no date for Parliament’s return in sight, Don Martin writes in an exclusive column for CTVNews.ca.

Students from around the world said Canada is their top choice for post-secondary education, beating the U.S., Australia and the U.K. in a new survey from IDP Connect.

UPDATED

Hollywood s Captain Kirk, 90-year-old William Shatner, blasted into space Wednesday in a convergence of science fiction and science reality, reaching the final frontier aboard a ship built by Jeff Bezos Blue Origin company.

Prince William has taken a thinly veiled swipe at the billionaires embroiled in a space tourism race, saying the world s greatest brains should instead be focused on solving the environmental problems facing the Earth.

A building fire that raged out of control for hours overnight in a major city in southern Taiwan left 46 people dead and at least 41 others injured, authorities said Thursday.

In today s environment, is it a good idea to ask for a raise? CTV s chief financial commentator Pattie Lovett-Reid tells potential raise seekers what to do, and what not to do, in her latest column on CTVNews.ca.
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