Canopy Growth finalizes Wana Brands acquisition after three years

Ontario-based Canopy Growth Corp. (TSX: WEED) (Nasdaq: CGC) announced Wednesday that it has, at long last, completed the acquisition of U.S. marijuana edibles company Wana Brands, nearly a full three years after the $279 million deal was first announced.

“Canopy USA now owns 100% of the outstanding equity interests in Wana,” the company said in a press release, indicating its full intent to expand into the U.S. cannabis market. “Canopy USA is fulfilling its ambition of establishing a leading brand-focused cannabis company in the U.S.”

Canopy USA, a subsidiary of Canopy built specifically to ease the company’s U.S. entrance from Canada, now fully owns Wana Wellness LLC, The CIMA Group LLC and Mountain High Products LLC, which collectively comprise Wana Brands.

Canopy USA has also been on an acquisition spree for months, snapping up two other big-name companies, including California-based Jetty – of which Canopy USA owns 75% – and New York-based multistate operator Acreage Holdings Inc. (CSE:ACRG.A.U) (OTCQX:ACRHF) – a deal that is not expected to close until next year – all to position itself for a splashy entrance into U.S. marijuana.

“With Wana now part of Canopy USA alongside Jetty, Canopy USA is gaining momentum while reinforcing its commitment to building a diverse portfolio of industry-leading brands in the U.S. cannabis market,” Canopy CEO David Klein said in the release this week.

In addition, Wana Brands has expanded into the intoxicating hemp sector with its hemp-based edibles line Wanderous, Wana CEO Joe Hodas said. That should give Canopy USA even more flexibility in the national cannabis market.

Still, Canopy has continued to struggle financially, and reported a net loss of C$127 million in the second quarter of 2024, after losing C$129 million in the first quarter.

Leadership at both Canopy and Wana has also been shifting. Wana founder Nancy Whiteman announced her departure earlier this year, and Klein intends to step down from the helm of Canopy by March.