Canopy Growth shareholders approve proposed acquisition of Acreage Holdings

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Some facts about medicinal cannabis
Workers produce medical marijuana at Canopy Growth Corporation's Tweed facility in Smiths Falls, Ont., on February 12, 2018. The Trudeau government is moving to ensure the Senate doesn't hold up its plans to legalize recreational marijuana in July. The government's representative in the upper house, Sen. Peter Harder, wants second reading debate on Bill C-45 wrapped up by March 1, after which it would go to committee for detailed examination. THE CANADIAN PRESS/Sean Kilpatrick

Canopy Growth Corp. says its shareholders approved transactions connected to the company’s proposed acquisition of U.S. cannabis company Acreage Holdings.

The Smiths Falls, Ont.,-based cannabis producer says 99.05 per cent of its shareholders voted in favour of a resolution at a special meeting held today.

The resolution approves issuing Canopy Growth common shares and making certain amendments to some company warrants in connection with the proposed acquisition.

It says Acreage shareholders also approved the transaction at a special meeting held simultaneously.

The approvals come after a U.S. hedge fund said in May that it will vote against the US$3.4-billion offer because it is “unbelievably lopsided” in favour of Canopy Growth.

The two companies expect the transaction to close on or close to June 27 and it is subject to approval by the Supreme Court of British Columbia and other closing conditions.

Canopy Growth CEO Bruce Linton says in a statement that the transaction’s completion “is intended to position us to efficiently and effectively enter the U.S. cannabis market once federally permissible.”

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