Canopy Growth Corporation (NASDAQ:CGC) (TSX:WEED) has filed a revised proxy statement with the U.S. Securities and Exchange Commission, which includes updates related to its strategy to accelerate entry into the U.S. cannabis industry through a U.S.-domiciled holding company, Canopy USA, LLC. Upon receiving shareholder approval for the creation of a new class of non-voting exchangeable shares in the capital of Canopy Growth, Canopy USA is expected to exercise rights to acquire Acreage Holdings, Inc. (OTCQX:ACRDF) (OTCQX:ACRHF); Mountain High Products, LLC, Wana Wellness, LLC and The Cima Group, LLC (collectively, “Wana”); and Lemurian, Inc. (“Jetty“).
In order to ensure continued compliance with NASDAQ’s listing rules, Canopy Growth has modified the structure of the company’s interest in Canopy USA such that it will not be required to consolidate the financial results of Canopy USA with the company’s financial statements in accordance with generally accepted accounting principles in the United States.
The agreed upon structural amendments to the company’s interests in Canopy USA include reducing Canopy Growth’s economic interest in Canopy USA to no greater than 90%, adjustments to the composition and nomination rights of Canopy USA’s board of managers, and modifications to the terms of the initial protection agreement, among other amendments as further described in the revised proxy statement.
After the SEC completes its review of the proxy statement, a date for the special meeting of shareholders will be set where shareholders will be asked to consider a special resolution authorizing an amendment to the company’s articles of incorporation to create the new class of non-voting exchangeable shares in the capital of Canopy Growth.
Photo: Benzinga edit with photos by jarmoluk and lindsayfox on Pixabay
Related News
Acreage FY22 Revenue Grows 26% To $237.1M
