Canadian cannabis company Canopy Growth has entered into an agreement to acquire Wana — the number one edibles brand in North America — once cannabis is legalized federally in the U.S., Forbes reports. Canopy is reportedly paying $297.5 million for the option to acquire 100% of each Wana entity, including Mountain High Products, Wana Wellness, and the Cima Group, the report says.
Once Canopy decides to move ahead with the acquisition, it will pay 15% of the fair market value of the entities being acquired; however, until the purchase is complete, Canopy Growth will have no interest in Wana, which will continue to operate independently, according to Forbes.
David Klein, CEO of Canopy Growth, told Forbes that the deal provides the company with exposure to the edibles market in the U.S. and Canada — which is the fastest-growing market segment — and would automatically make Canopy a leader in the edibles category.
“Through the agreement with Wana, Canopy is adding another industry leading brand to power our rapid growth across the U.S. Wana has built a successful business using an asset-light licensing model, allowing them to scale across North America.” — Klein to Forbes
Wana currently manufactures and sells gummy products in Colorado while licensing its intellectual property in 11 other states.
Nancy Whiteman, CEO and co-founder of Wana Brands, described the deal as “an ideal relationship in the cannabis industry.”
“Wana is a bit of a unicorn as a woman-owned, boot-strapped, and profitable business,” she said in an interview with Forbes. “We are generating significant growth and have become the leading edibles brand in North America without taking on investors or debt.”
She added that the company has “known all along” that there would be a time that they “could no longer do it alone.”
“The breakneck pace of growth, the competitive environment, and the potential to take advantage of strategic opportunities require a degree of both outside-of-the-industry experience, as well as access to capital that we simply didn’t have,” she said in the interview. “Canopy of course fulfills those needs and more.”
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