Business

Canopy/Wana tie-up caps week of big deals

By Alex Halperin
Oct 14, 2021
Wana CEO Nancy Whiteman Courtesy: Wana Brands

Canopy Growth, one of Canada’s largest operators, agreed to acquire Colorado-based edibles maker Wana Brands for 297.5M once U.S. federal law makes it permissible.

  • Wana is the top U.S. edibles brand by market share. It also has a substantial portion of the Canadian market through a partnership with Indiva
  • Wana CMO Joe Hodas recently described the brand’s new “Optimals” product line as a “monumental shift in how we market the plant.” 
  • It’s the latest in a series of cross-border deals designed to create ways for Canadian operators to access the U.S. market without breaking U.S. law. Canopy is paying $297.5 million upfront in cash for call options to acquire 100% of three Wana entities. There may be future payments as well.
  • Several days before the deal was announced, the Wall Street Journal discussed the dilemma for Canadian companies. 
  • Canopy previously entered a deal to buy MSO Acreage once it was legally viable. The unconsummated deal has since been scaled back.

Separately, High Times has a long story on a cool kids version of a cross-border partnership between B.C.-based Burb, rapper Problem‘s Coffee & Kush line and equity brand GreenLabelRx

Many more deals this week: