SMITHS FALLS, Ont. — Canopy Growth Corp. says it has signed a deal that will give it the right to acquire California cannabis company Jetty Extracts — if the U.S. federally legalizes the main ingredient in pot.
The deal is structured as two separate option agreements that give a subsidiary of Canopy the ability to acquire up to 100 per cent of Jetty’s equity interests upon legalization or if Canopy exercises its rights earlier.
Under the agreements, Canopy will make aggregate and upfront payments of cash and common shares totalling about US$69 million in exchange for a 75 per cent interest in Jetty.
Once Smiths Falls, Ont.-based Canopy exercises its right to acquire all of the interests, it will begin making extra payments through cash and common shares.
Until Canopy exercises its rights, the companies will operate independently of one another and Canopy and the subsidiary will not hold any economic or voting interests in Jetty.
California-based Jetty is known for making solventless vapes, unrefined resin, small batch concentrates and infused pre-rolls, which Canopy says it could bring to the Canadian market through this deal.
This report by The Canadian Press was first published May 18, 2022.
Companies in this story: (TSX:WEED)
