Canopy Growth Eyes Acquisition of the Best Cannabis Edibles Company, Wana Brands

Canopy Growth Corporation (TSX:WEED, NYSE:CGC) and Wana Brands (consisting of Mountain High Products, LLC, Wana Wellness, LLC and The Cima Group, LLC), together announced that they have reached an agreement that would allow Canopy Growth to obtain 100% of the outstanding membership interests of Wana, based on the federal government’s permissibility of marijuana use.

Wana sells gummies in the state of Colorado in the U.S. and by way of market share is the leading Cannabis Edibles Brand in North America. The company licenses its intellectual property rights to partners who produce, supply, and sell Wana products in many states, including Arizona, Florida, California, Michigan, and Illinois.

About Canopy Growth

Canopy Growth, one of the world’s leading cannabis consumer product companies, is focused on utilizing the full potential of cannabis to help people through its healing powers as well as its recreational benefits for the community. Towards this, the company is offering a wide range of products which include softgel capsule, dried flower, infused beverage, oil, skin creams, edible products, and vaporizers.

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The company’s medical brand, Spectrum Therapeutics, is one of the market leaders in Germany and Canada, and its First & Free and Martha Stewart CBD brands have introduced more varieties in the United States. Canopy Growth serves the health and fitness arena also through Biosteel Sports Nutrition. The company trades on the TSX under the stock symbol WEED and on the NASDAQ under the stock symbol CGC.

Benefits of Acquisition for Canopy Growth

• Since Wana is poised to expand all across the U.S, it will give Canopy Growth better chances of expansion and improved exposure to the cannabis market in the U.S. upon federal permissibility.
• The gummies that Wana produces is a very popular and fast-growing product in both the U.S. and Canada and constitute more than 71% of the edibles sold in the market. Acquisition will help Canopy to establish control over the gummy market as researches have expressed the opinion that edibles are likely to continue being popular, especially among the new customers who use THC as a therapeutic agent.
• Wana is the leading Cannabis Edibles Brand in North America by way of market share; it has the highest multi-market presence in the gummy market across the U.S; and highest share in the gummy market of Canada. All these will significantly help to make Canopy Growth the leader in the edibles product section of the cannabis market.
• Once federal permissibility allows Canopy Growth to take control of Wana, it will own Wana’s vertically-integrated Colorado facility, and its licensing division which is already functioning in 11 states and is hoped to be funcioning in 20 states by the end of 2022. Once the company acquires Acreage Holdings, Inc. and gets conditional ownership in TerrAscend Corporation, its control in the cannabis market will widen much more.
• Wana’s business is scalable and profitable, and along with its licensing practice, Canopy Growth will get ample opportunity to develop their business well even before federal legislation in favor of cannabis production and marketing comes into force.
• Wana being North America’s topmost cannabis edibles brand, its incorporation will further enrich Canopy Growth’s already rich product choices for the recreational cannabis’s market.

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David Klein, the CEO of Canopy Growth said that they hoped that the company would get established as a leading cannabis company of the world, and also improve their position in the cannabis markets of Canada and the U.S.

He also spoke about the company’s decision to add cannabinoid gummies to its existing brands. Nancy Whiteman, CEO and founder of Wana Brands expressed her satisfaction at the proposed merger and said that Wana’s fiscal thoroughness and the importance it gave to bottom line growth were going to benefit Canopy Growth substantially once the merger took place.

She also said how Wana had sought partners for the past 11 years but had not succeeded in finding one that met all their expectations. But it was different with Canopy Growth and her company felt honored to be a part of Canopy Growth in their journey forward.