Canadian cannabis giant Canopy Growth is acquiring (so to speak) Wana Brands, the leading cannabis edibles brand by market share in North America, according to headset data.
According to information obtained exclusively in advance of an official announcement, the deal has a similar structure to Canopy with Acreage Holdings a few years ago. Under the agreement, the Canadian operator will acquire the right to purchase Wana (consisting of Mountain High Products, Wana Wellness and The Cima Group) as soon as THC is approved as federal THC in the US
The call option to acquire 100% of the membership in each Wana company will be acquired by Canopy for an upfront payment of $ 297.5 million.
If Canopy decides to proceed with the acquisition, it will pay 15% of the market value of the acquired companies. Until the completion of the purchase, Canopy Growth is expected to have no economic, voting, or controlling interest in Wana, which will continue to operate independently.
“Through the agreement with Wana, Canopy adds another industry-leading brand to fuel our rapid growth in the US Canopy Growth,” said in an exclusive interview.
Breaking down the key strategic benefits of the acquisition, Klein Wana stated:
- Strengthens Canopy Growth’s U.S. ecosystem.
- Provides access to one of the fastest growing segments in both the US and Canadian cannabis markets: edibles.
- Automatically would make Canopy a leader in the edibles category.
- Increases Canopy’s exposure to the US market after state legalization.
- Represents an opportunity to acquire a profitable and highly scalable company.
“Edibles play a key role in attracting new consumers, and the addition of the No. 1 food brand in North America strengthens our competitive position on both sides of the border,” added Klein. “In addition to our existing relationships with Acreage and TerrAscend, the agreement with Wana strengthens Canopy’s position for rapid entry into the US THC market after approval.”
Wana manufactures and sells gummy bears in Colorado and licenses its intellectual property to partners in 11 additional states.
Nancy Whiteman, CEO and Co-Founder of Wana Brands added, “If we could outline what an ideal relationship would be in the cannabis industry, this would be it. Wana is a bit of a unicorn as a woman-owned, boot-strapped, and profitable company. We are generating significant growth and have become the leading grocery brand in North America with no investors or debt.
“However, we knew all along that there would be a time when we would no longer be able to do it alone. The rapid growth, the competitive environment and the ability to take advantage of strategic opportunities require a certain amount of experience outside the industry as well as access to capital that was simply not available to us. Canopy, of course, fulfills those needs and more, ”she added.
What Wana couldn’t have known at the beginning of the discussions was how closely her interests and culture would align with Canopy’s, Whiteman continued.
“As we started to get some clarity on how our roadmaps fit together, it became very clear that not only was this the right partnership for us, but that there was great potential to be the driving force behind edibles and the industry as a whole Individual team, ”concluded Whiteman.