Why Canopy Growth Stock Dropped Today
Shares of Canopy Growth (NASDAQ: CGC) had dropped 2.7% by 11:50 a.m. EDT on Thursday after the Canadian cannabis company announced that it will acquire fellow Canadian producer Supreme Cannabis (OTC:SPRW.F).
Canopy Growth will pay for the acquisition in both stock and cash, trading 0.12 shares of its own stock, and a token $0.0001 (that's 1 penny per every 100 shares) for each share of Supreme Cannabis outstanding. In total, the deal works out to 435 million Canadian dollars ($348 million) -- 66% above Supreme Cannabis' closing price last night. In exchange, according to the announcement of the deal, Canopy will gain a top-10 marijuana company in Canada, a "low-cost and scalable cultivation facility," and one of Canada's leading premium brands in 7ACRES.
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Source Fool.com
