ACRGF - Canopy Growth Bails Out Acreage Holdings: Keeps Alive Acquisition Target
Source: Canopy Growth.
Summary
Acreage (ACRGF) was sinking due to mismanagement and over-spending. Seeing their acquisition target floundering, Canopy Growth (CGC) has re-affirmed their commitment to keeping Acreage solvent and to purchasing Acreage when/if possible.
In a complex transaction, Canopy Growth has lowered the purchase price for Acreage, lent an Acreage subsidiary money at below-market rates, given cash to Acreage shareholders, started a two-share structure for Acreage shares, and ousted now-former Acreage CEO Kevin Murphy. Despite the lower payment, in my view, this deal is a net win for Acreage shareholders