Acreage Holdings says shareholders with 91% of vote favor deal with Canopy Growth

Acreage Holdings Inc. said Tuesday that shareholders that hold about 91% of the votes eligible to be cast at a special meeting on June 19 favor Canopy Growth Corp.’s proposed takeover of the company, as soon as cannabis has been legalized in the U.S. In a statement, Acreage said five senior executives have agreed to extended lockup agreements for their own shareholdings, consistent with the terms described in the company’s May 17 information circular. Canopy has the right to buy Acreage in a deal valued at $3.4 billion, as soon as it can legally participate in the U.S. cannabis sector, either through a bill like the current STATES Act that some lawmakers are backing, or through a full removal of the federal ban. Shareholders from both companies are due to vote on the deal at the June 19 meeting. Last week, Canopy said the deal has the backing of private-equity firm Cresco Capital Partners LLC, with managing partner Matt Hawkins arguing that it brings a much needed infusion of capital to an industry that is starved of cash. “Our executives remain 110% committed to the long-term Acreage story,” said Acreage CEO Kevin Murphy in a statement on Tuesday. Acreage shares were not yet active premarket. Canopy shares were up 0.5% and have gained 65.1% in the last 12 months, while the S&P 500 has gained 3.9%.

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