The Supreme Cannabis Company, Inc. (TSX:FIRE) (OTCQX:SPRWF).
The Canadian cannabis giant said Thursday that it agreed to acquire Supreme Cannabis issued and outstanding common shares for about CA$435 million ($345.7 million).
The Canopy-Supreme Transaction Details: Under the terms of the agreement, each Supreme Cannabis share is worth 0.01165872 of a Canopy common share and $0.0001 in cash.
Apart from shareholder and court approvals, under the Canada Business Corporations Act, the transaction is also subject to TSX approval and approval under the Competition Act.
In addition, Supreme Cannabis shareholders will receive a 66% premium per share calculated using Supreme Cannabis and Canopy s Wednesday, April 7 closing prices on the Toronto Stock Exchange.
Canopy Growth buying Supreme Cannabis for $435-million, nabbing one of Canada’s top pot brands Bookmark Please log in to listen to this story. Also available in French and Mandarin. Log In Create Free Account
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Shares of Canopy Growth Corp. dipped Thursday morning on news that it had entered into a $435-million stock and cash deal to acquire The Supreme Cannabis Company Inc., paying a 66 per cent premium over Supreme’s Wednesday closing stock price.
Supreme’s shares shot up by roughly 50 per cent to $0.40 in morning trading after the announcement. At Wednesday’s closing stock price of 26 cents, Supreme had a market value of approximately $145-million.
Our supply is in balance with our demand, so we just view this as a win on the brand side and a win from a production asset side, Canopy chief executive David Klein told The Canadian Press. It also bolsters our path to profitability in Canada, which then positions us to hold that strong set of financial statements for our entry into the U.S. market.
The deal is Canopy s latest acquisition in a wave of consolidation in the cannabis sector, while it watches to see whether the U.S. loosens laws around marijuana following the election of President Joe Biden.
Home / Top News / SUPREME CANNABIS ALERT: Bragar Eagel & Squire, P.C. Investigates Sale of SPRWF and Encourages Investors to Contact the Firm
SUPREME CANNABIS ALERT: Bragar Eagel & Squire, P.C. Investigates Sale of SPRWF and Encourages Investors to Contact the Firm
NEW YORK, April 08, 2021 (GLOBE NEWSWIRE) Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, has launched an investigation into whether the board members of The Supreme Cannabis Company, Inc. (Other OTC: SPRWF) breached their fiduciary duties or violated the federal securities laws in connection with the company’s acquisition by Canopy Growth Corporation (NASDAQ: CGC).
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Canopy Growth Corp. is buying rival pot producer Supreme Cannabis Company Inc. for $435 million in a cash-and-stock deal aimed at bolstering its share of the Canadian recreational market.
The deal comes a few days after Canopy announced it had bought the parent company behind Ace Valley, a white-label cannabis company that sells pre-rolls, vapes, and edibles in the Canadian market. While that deal expanded the company s premium offerings in Canada, the deal for Supreme gives Canopy another leading national brand that has a reputation for high quality and consumer traction.
Canopy said in a release it expects approximately $30 million in cost synergies over the next two years once the deal closes. The company also said the tie-up with Supreme will give it a 13.6-per-cent share of the Canadian cannabis market, including a top position in the premium dried flower and PAX vape categories. It will also acquire a small cannabis cultivation facility in Kincardine, Ont. as well as some s