Canopy Growth (NASDAQ: CGC) is acquiring cannabis edibles maker Wana Brands

Oct 14, 2021 By MarketDepth

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Canopy Growth (NASDAQ: CGC), a Canadian cannabis company, announced it is acquiring cannabis edibles maker Wana Brands. The company will be paying USD297.5 Million in upfront cash to purchase 100% of the membership interests of each Wana entity including Mountain High Products LLC, Wana Wellness LLC, and The Cima Group LLC.

Popular in the USA

Wana is a well known North American cannabis-infused gummy maker, which has a popular brand in the U.S. The gummies maker is present in 12 states and plans to expand to another nine by year’s end. Once cannabis is federally legal in the U.S., Canopy will be able to exercise its options, paying 15% of the fair market value of each entity, according to the company.

“Through the agreement with Wana, Canopy is adding another industry leading brand to power our rapid growth across the U.S. Wana has built a successful business using an asset-light licensing model, allowing them to scale across North America.”

David Klein, CEO of Canopy Growth

Edibles account for 5% of the Canadian cannabis recreational market and brought in about USD149 Million throughout the last year, according to Hifyre data. In Canada, Wana’s gummy brand is registered by Indiva Ltd. and has produced approximately USD49 Million in sales within the last 12 months, Hifyre data revealed.

“Edibles play a key role in attracting new consumers and adding the #1 edibles brand in North America strengthens our competitive position on both sides of the border. In addition to our existing relationships with Acreage and TerrAscend, the agreement with Wana furthers Canopy’s positioning for rapid entry post-permissibility to the US THC market.”

David Klein, CEO of Canopy Growth