Canopy Growth and Acreage Holdings Cut the Price of Their Merger
Canopy Growth (NYSE: CGC) and Acreage Holdings (OTC: ACRGF) are amending the terms of a merger deal agreed to last year, effectively reducing its value significantly.
As with the previous agreement, the new version of the arrangement is contingent upon marijuana being legalized at the federal level in the U.S. (the "triggering event" in the language of the deal).
It also rests on the division of Acreage's common stock into "fixed" and "floating" Acreage shares; the former is to consist of 0.7 of one share of that common stock, with the latter comprising the remainder. Canopy Growth will pay 0.3048 of one of its shares for each fixed Acreage share; the original deal's level was 0.5818 of a Canopy Growth share.
Source Fool.com
