Canopy Growth (TSX: WEED) (NYSE: CGC) is reporting that its shareholders voted overwhelmingly in favor of the issuance of common shares and certain amendments to certain outstanding company warrants in connection with the proposed acquisition of Acreage Holdings.
The Canopy Shareholder Resolution was approved by approximately 99.05% of votes at the meeting in accordance with the requirements of the Toronto Stock Exchange. In addition to the approval by Canopy Growth shareholders, Acreage shareholders also approved the deal at the special meeting.
“On behalf of Canopy Growth, I thank the shareholders of both companies for their vote of confidence in this historic transaction,” Bruce Linton, chairman and co-CEO of Canopy, said in a statement.
“Completion of the transaction is intended to position us to efficiently and effectively enter the US cannabis market once federally permissible. Alongside our international market strategies and US Hemp strategy, we believe the acquisition of Acreage will be a key step in bolstering our position as a truly global company,” Linton noted.
Initial implementation of the transaction is subject to approval by the Supreme Court of British Columbia and satisfaction of certain other closing conditions.
Canopy and Acreage expect the transaction to be implemented on or about June 27. Completion of the deal is contingent on the occurrence or waiver, at Canopy’s discretion, of changes in U.S. federal law to permit the general cultivation, distribution, and possession of cannabis or to remove the regulation of such activities from the federal Laws of the U.S.