ROT - FIRE Stock: 9 Things to Know About Supreme Cannabis and the CGC Stock Deal
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Supreme Cannabis (TSE:FIRE) stock is soaring higher on Thursday after announcing a massive deal with Canopy Growth (NASDAQ:CGC).
Here’s everything investors need to know about the deal between the two companies.
- This deal will have Canopy Growth acquiring Supreme Cannabis.
- The company intends to do so with a mix of cash and stock that values the company at $435 million.
- Canopy Growth’s offer for Supreme Cannabis includes .01165872 shares of Canopy stock and .01 cents in cash for each share of FIRE stock.
- This represents a premium of 66% for FIRE stock based on both companys’ prices on the Toronto Stock Exchange as of Wednesday.
- The deal still needs approval from shareholders before it can close.
- So long as no problems pop up, the deal should close by the end of June 2021.
- Today’s news has FIRE stock seeing abnormally high levels of trading.
- As of this writing, more than 67 million shares of the stock have changed hands.
- That’s a hefty increase over its daily average trading volume of about 12.6 million shares.
David Klein, CEO of Canopy Growth, said the following about the deal moving FIRE and CGC stocks today.
‘As we continue to expand our leading brand portfolio, we’re excited to reach more consumers through Supreme’s premium brands and high-quality products, further solidifying Canopy’s market leadership. Supreme’s deep commitment to superior genetics, top-tier cultivation and strict quality control, paired with Canopy’s leading consumer insights, advanced R&D and innovation capabilities, is expected to create a powerful combination that aligns with our strategic focus to generate growth with premium quality products across key categories.”
FIRE stock was up 49.1% and CGC stock was down 3.4% as of Thursday morning.
Supreme Cannabis and Canopy Growth aren’t the only companies with recent merger and acquisition news.
Several other companies are working on mergers, SPACs and otherwise. A few examples include Altimeter Growth (NASDAQ:AGC), Rotor Acquisition (NYSE:ROT), and Apex Technology Acquisition (NASDAQ:APXT). Investors can learn more about these efforts with the coverage InvestorPlace.com offers below.
More Merger and Acquisition News
- AGC Stock: 19 Things to Know About Altimeter Growth and the Huge Grab SPAC Merger
- ROT Stock: 5 Things to Know About Rotor and the Sarcos Robotics SPAC Merger
- Microsoft Connection Adds Tremendous Value to Apex Technology Acquisition
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.
With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that?InvestorPlace.com’s writers disclose this fact and warn readers of the risks. Read More:?Penny Stocks — How to Profit Without Getting Scammed
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