Canopy Growth Corporation (NASDAQ: CGC) and The Supreme Cannabis Company, Inc. (TSX: FIRE) (OTCQX: SPRWF) have reported entry into a definitive agreement where Canopy will acquire all Super Cannabis’s issued and outstanding common shares in a transaction valued at USD 435 Million.
Supreme Cannabis shareholders will receive 0.01165872 of a Canopy common shares and USD 0.0001 in cash in exchange for each Supreme Cannabis share held. The transaction will provide Supreme Cannabis shareholders with a premium per Super Cannabis share of 66% based on closing values of the stocks as of April 7th, 2021.
“As we continue to expand our leading brand portfolio, we’re excited to reach more consumers through Supreme’s premium brands and high-quality products, further solidifying Canopy’s market leadership,” said David Klein, Chief Executive Officer of Canopy. “Supreme’s deep commitment to superior genetics, top-tier cultivation and strict quality control, paired with Canopy’s leading consumer insights, advanced R&D and innovation capabilities, is expected to create a powerful combination that aligns with our strategic focus to generate growth with premium quality products across key categories.”
“This transaction is a testament to the value created by all the teams at Supreme and will be beneficial to all of our stakeholders,” added Beena Goldenberg, President and CEO of Supreme Cannabis. “We have been successful at delivering great products that achieved strong customer loyalty, and operating at levels of efficiency that are industry-leading. We have also built a highly sought-after premium brand in 7ACRES. Combining Supreme Cannabis with Canopy – a Canadian market leader with exposure to the United States – presents a significant value creation opportunity for both companies. We look forward to working with Canopy to complete this transaction.”