Canopy Growth enters into agreement to acquire Mettrum in $430M deal
Canopy Growth Corp. of Smiths Falls, Ont., has an agreement to buy rival Canadian medical cannabis producer Mettrum Health Corp.
The $430 million purchase -- which is subject to approval -- will be made with Canopy Growth shares, which closed at $11.80 on the Toronto Stock Exchange on Wednesday. Mettrum shareholders will receive 0.7132 common shares of Canopy Growth per common share of Mettrum.
The deal will add “significant acreage” to Canopy Growth’s production capacity and bolster its product offering with two new national brands.
Canopy Growth’s bid for Mettrum represents the company’s most expensive acquisition to date, coming at a time when valuations across Canada’s marijuana industry are seeing massive gains.
Mettrum shares have climbed over 200 per cent year-to-date, but Canopy Growth Chairman and CEO Bruce Linton is convinced the price is well worth it.
“You think over the next two to three years, how valuable this asset...
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