Acreage Holdings Inc. (ACRG.U) stock rose over 9% to close at $22.49 on rumors of an acquisition by Canopy Growth Inc. (CGC) on Wednesday. Both company CEO’s are scheduled to appear on CNBC on Thursday morning at 6:50 am adding fire to the whispers.
Acreage CEO Kevin Murphy and Canopy Growth CEO Bruce Linton are set to appear with Melissa Lee in the morning as the two companies are supposed to be finalizing the agreement this evening. It had been suggested that Canopy had been looking for a U.S. company and Acreage is one of the largest multi-state operators in the country. In addition to that, the two CEO’s have appeared together frequently at various events and are familiar with each other.
The biggest issue though could be the listing at the New York Stock Exchange. Canopy is listed at the NYSE, which has been steadfast about only listing Canadian cannabis companies and not U.S. based companies. The reasoning was that Canadian cannabis companies were not breaking the law since cannabis is fully legal in the country. However, in the U.S. cannabis is still federally illegal. This is not allowed as per the NYSE listing requirements. So, the question remains – how can Canopy maintain its listing at the NYSE if it acquires Acreage?
Acreage did not respond to a request for comment.
The company holds licenses in 17 states of which 12 are in operation and Acreage has licenses to process in 12 states, seven are operations. The company has licenses to operate 68 retail dispensaries in 12 states, of which 21 are currently operational in 10 states. The Botanist is its retail concept designed to appeal to both adult use and medicinal consumers.
Acreage is licensed to open four stores in New York state home under the company name NYCANNA. The company is also planting its flag in Queens with its latest Botanist opening this past week on February 20. It is Acreage’s first dispensary in the New York City area.
Its operation in Florida is the result of its purchase of Nature’s Way Nursery of Miami, which it acquired for $67 million in January 2019. Acreage plans to open 18 retailers in 2019 in the state. Its Michigan properties were the result of an agreement with Blue Tire Holdings reached in August 2018.
Other states include Ohio, North Dakota, New Jersey, Massachusetts, California, Connecticut, Iowa, Maine, Maryland, New Hampshire, Pennsylvania, Oregon and Oklahoma. There are pending acquisitions in Rhode Island and the Form Factory in Oregon that has operations in Washington and California.