Institutional Shareholder Services Recommends Canopy Growth Shareholders Vote In Favor Of The Creation Of Exchangeable Shares To Further The Advancement Of Canopy USA
Portfolio Pulse from Benzinga Newsdesk
Institutional Shareholder Services (ISS) has recommended Canopy Growth shareholders to vote in favor of creating exchangeable shares to advance Canopy USA. This move, part of a strategy announced on October 25, 2022, aims to accelerate Canopy Growth's entry into the U.S. cannabis market by enabling the acquisition of U.S. THC businesses like Acreage Holdings, Mountain High Products, Wana Wellness, and others through Canopy USA. Approval of the proposal would lead to Canopy Growth deconsolidating Canopy USA's financial results and holding a non-controlling interest, accounted for as an equity method investment. The vote is scheduled for April 12, 2024.
April 01, 2024 | 2:58 pm
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ISS recommends Canopy Growth shareholders approve exchangeable shares to facilitate Canopy USA's U.S. cannabis market entry and acquisitions. Approval could lead to deconsolidation of Canopy USA's financials and a non-controlling interest for Canopy Growth.
The recommendation by ISS for shareholders to vote in favor of creating exchangeable shares is a positive development for Canopy Growth. This strategic move is expected to facilitate Canopy Growth's entry into the U.S. cannabis market and enable acquisitions through Canopy USA. The potential deconsolidation of Canopy USA's financial results and the transition to a non-controlling interest could positively impact Canopy Growth's financial flexibility and valuation, as it allows the company to realize value in the near term and positions it for growth upon federal permissibility of cannabis in the U.S.
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