Hedge fund Marcato opposes Acreage’s sale to cannabis producer Canopy

Hedge fund Marcato Capital Management said on Monday it opposed marijuana company Acreage Holdings Inc’s $3.4 billion sale to rival Canopy Growth Corp , arguing Acreage was too hasty in agreeing to a deal at too low a price. “It is highly imprudent for Acreage to sell itself today at the proposed valuation, with so much unlocked growth and value embedded in the Company,” Marcato portfolio manager Mick McGuire wrote in the letter seen by Reuters. In April, Smiths Falls, Ontario-based Canopy said it would pay $3.4 billion in cash and stock for New York-headquartered Acreage, giving Acreage investors $300 million in cash upfront.

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