Canadian cannabis company Canopy Growth on Wednesday announced a plan to acquire California-based Jetty Extracts. The deal will take effect once the U.S. government legalizes cannabis or earlier at Canopy’s election.
Jetty is a top 10 brand in California and a top-five brand in the vape categories, based on industry tracker BDSA data. Canopy notes that Jetty holds more than 75% share in the solventless vape market in California and that their monthly sales increased 45% from February to March.
“Their products have received critical acclaim winning Best Vape at the 2021 Cannabis Cup, in addition to consumer success with the top eight solventless vape SKUs in California and the #1 PAX Era pods brand three years in a row.” – Canopy in a press release
David Klein, Canopy CEO, said the firm is “building a house of premium cannabis brands with a focus on the core growth categories that will power the market’s path forward.” He added that the company plans to bring the brand to the Canadian market.
Jetty Co-Founder and CEO Ron Gershoni described the deal as “mutually beneficial,” providing “long-term growth opportunities” for the Jetty brand and its employees.
“Canopy shares our vision and will support us as we bring the highest-quality Jetty products to consumers across North America and the world,” he said in a statement. “We can’t wait to be a part of what Canopy is building as we continue to define the future of cannabis and introduce more consumers to what makes Jetty products so special.”
The deal includes upfront payments of $69 million in cash and stock which will give Canopy 75% of equity interests in Jetty.
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