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ALANA PATERSON/The New York Times News Service
Shifting brand loyalty and increasing popularity for better-quality cannabis products are hampering the growth prospects of some of the largest cannabis companies in Canada – despite an overall boost in sales of legal recreational cannabis throughout the pandemic.
Last week, both Aphria Inc. and Organigram Holdings Inc. reported weaker-than-expected quarterly revenues driven by lower domestic demand for their products.
7ACRES is being sold.
Canopy Growth is purchasing Supreme Cannabis (7ACRES’ parent company) for an estimated $435 Million in cash and stocks.
The deal would see Canopy control 7ACRES premium brands as well as operations at the Tiverton facility.
Canopy bought Toronto-based Ace Valley, which makes vapes, gummies and pre-rolls, last week.
In a news release, the agreement would see Supreme Cannabis shareholders receive 0.01165872 (little over one-one hundredth of a cent) of a Canopy common share (the “Exchange Ratio”) and $0.0001 (one-ten-thousandth of a cent) in cash in exchange for each Supreme Cannabis Share held.