Canopy Growth Corp (NASDAQ: CGC), The Cima Group, and Mountain High Products LLC have signed a definitive agreement offering Canopy Growth the right to purchase 100% of the outstanding interest of Wana once the federal government approves THC.
Wana expanding its footprint
Wana produces and sells gummies in Colorado and licenses IP to partners that produce, supply, and sell Wana-branded gummies in Arizona, Illinois, California, Florida, and Michigan, making the company footprint in 12 US states across Canada. Before the end of fiscal 2022, Wana anticipates having license agreements in place across 20 US states that include future recreational markets in new Jersey and New York.
Canopy CEO David Klein said, “As we establish Canopy Growth as the world’s leading cannabis company, acquiring the #1 cannabis edibles brand in North America will serve to strengthen our market position in both Canada and the United States. The right to acquire Wana secures another major, direct pathway into the U.S. THC market upon federal permissibility, and in Canada we’ll be adding the top-ranked cannabinoid gummies to our industry-leading house of brands. We’re confident in the future growth of the edibles category and the tremendous opportunities with Wana.”
Wana focuses on bottom-line growth
Wana CEO Nancy Whiteman said, “Today’s announcement reflects the culmination of more than a decade of hard work, dedication and vision put forth by our employees and partners, as well as an unwavering commitment to the plant and -our customers. We have long considered what the next phase of our growth might look like, and this deal is not only a great testament to our focus on bottom line growth and fiscal diligence, but also to the value we believe Wana can bring to Canopy and its shareholders now and in the future. We have met many partners along the way over the past 11 years, but none have felt like the best and right fit until today.”