Summary
Canopy Growth (CGC) has announced a deal that gives the company the right to purchase Acreage Holdings (ACRGF) when legally permissible.
Companies on a major stock exchange can't operate in businesses that break federal laws. Acreage sells cannabis in the United States, which remains federally illegal. Thus, Canopy is not purchasing Acreage Holdings today. Instead, the deal terms give Canopy both the right and the obligation to acquire Acreage Holdings when legally permissible. Canopy thus will not own Acreage Holdings today, but will own Acreage in the future.
This deal is win-win: