Canopy Growth agrees to acquire U.S.-based vape producer Jetty Extracts

Canadian Licensed Producer Canopy Growth (NASDAQ:CGC) has agreed to acquire Lemurian, Inc. ("Jetty"), a California-based developer of clean vape technology and a producer of cannabis extracts, the companies said in statement on Wednesday.
Per the terms, Canopy Growth (CGC) will have the rights to acquire up to 100% of Jetty’s outstanding capital stock through a wholly owned subsidiary subject to federal legalization of THC or earlier.
The company is expected to pay $69 million upfront though a combination of cash and common stock in exchange for about 75% equity of Jetty subject to certain adjustments. The deal also includes a call option to acquire up to 100% of the equity interests in Jetty for cash and stock.
"There are significant opportunities for Jetty to scale at the state-level across the U.S. by leveraging Canopy's U.S. ecosystem,” Chief Executive of Canopy Growth (CGC) David Klein, adding “we're actively working on plans to bring the brand to the Canadian recreational market."
Go through Canopy Growth’s (CGC) past M&A deals.