Date Announced: April 8, 2021
Value: $435 Million
On April 8, 2021, The Supreme Cannabis Company, Inc. (Supreme Cannabis) (TSX: FIRE) (OTCQX: SPRWF) (FRA: 53S1) and Canopy Growth Corporation (Canopy) (TSX: WEED, NASDAQ: CGC) announced they had entered into a definitive arrangement agreement under which Canopy will acquire all of Supreme Cannabis' issued and outstanding common shares in a transaction valued at approximately $435 million on a fully-diluted basis.
The Transaction was approved by the board of directors of each of Canopy and Supreme Cannabis, and Supreme Cannabis' board of directors recommends that Supreme Cannabis shareholders vote in favour of the Transaction during a special meeting of shareholders, expected to be held in June 2021.
This transaction is expected to provide several benefits to both Canopy and Supreme shareholders, as bringing these two Canadian market leaders together will present a significant value creation and brand opportunity for both companies. Following the completion of the acquisition, Canopy will possess a brand portfolio including one of Canada's leading premium cannabis brands, 7ACRES.
BLG represented Supreme Cannabis with a team led by Andrew Powers that included Philippe Tardif, Cameron MacDonald, Andrew McLean, Colin Cameron-Vendrig, Jonas Farovitch (Securities), Kim Maguire, Danielle Lewchuk (Tax), David Wood, Todd Keeler, LuAnne Morrow (Intellectual Property), Xue Yan, Parisa Hurst (Real Estate), F.F. (Rick) Coburn (Environmental) Denes Rothschild (Competition), James Fu (Employment), Caitlin Sainsbury and Graham Splawski (Litigation).