Canopy Growth Set to Acquire Wana Brands for $300 Million

Deal for cannabis edibles brand would be finalized when THC becomes federally legal in U.S.
Canopy Growth, Wana Wellness logos

SMITHS FALLS, Ontario, and BOULDER, Colo. Diversified cannabis, hemp and vaporization device company Canopy Growth has entered into a definitive agreement to acquire Wana Wellness upon THC becoming federally legal in the United States. The deal is worth $297.5 million.

Boulder, Colo.-based Wana, made up of Mountain High Products, Wana Wellness and The Cima Group, is the No. 1 cannabis edibles brand in North America by market share, according to cannabis data and market intelligence firm Headset, Seattle.

Wana manufactures and sells gummies in Colorado and licenses its intellectual property to partners who manufacture, distribute and sell Wana-branded gummies across the United States, including in California, Arizona, Illinois, Michigan and Florida, giving Wana a total footprint of 12 U.S. states and Canada.

Wana expects to have license agreements in place in more than 20 U.S. states, including in future adult-use markets in New York and New Jersey, before the end of 2022.

“As we establish Canopy Growth as the world’s leading cannabis company, acquiring the No. 1 cannabis edibles brand in North America will serve to strengthen our market position in both Canada and the United States,” said David Klein, CEO, Canopy Growth, Smiths Falls, Ontario. “The right to acquire Wana secures another major, direct pathway into the U.S. THC market upon federal permissibility, and in Canada we’ll be adding the top-ranked cannabinoid gummies to our industry-leading house of brands. We’re confident in the future growth of the edibles category and the tremendous opportunities with Wana.”

Canopy Growth said benefits of the deal include:

  • Strengthening Canopy Growth’s U.S. ecosystem: Wana’s leadership position and ongoing expansion across the U.S. bolsters Canopy Growth’s product, brand and geographic exposure to the U.S. cannabis market upon federal permissibility.
  • Helping Canopy Growth gain dominance in the edibles category: The gummies category is one of the fastest-growing segments in both the U.S. and Canadian cannabis markets, accounting for more than 71% of all edibles purchased, according to Headset data.
  • Acquiring a profitable and highly scalable business model.

“Today’s announcement reflects the culmination of more than a decade of hard work, dedication and vision put forth by our employees and partners, as well as an unwavering commitment to the plant and our customers,” said Nancy Whiteman, CEO and co-founder of Wana Brands. “We have long considered what the next phase of our growth might look like, and this deal is not only a great testament to our focus on bottom line growth and fiscal diligence but also to the value we believe Wana can bring to Canopy and its shareholders now and in the future.”

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