The Financial Post reports in its Friday edition that Canopy Growth is buying The Supreme Cannabis Co. in a $435-million cash-and-stock deal, which comes on the heels of its purchase of AV Cannabis last week.
The Post's guest columnist Avery Mullen writes that Canopy chief executive officer David Klein says: "It allows us to create the really strong, home-market anchor point that we want for Canopy, which allows us to invest in our consumer more than anybody else and create products that excite our consumers. We're still sitting here with $2.5-billion of cash on our balance sheet. That cash will ultimately be used for investments in insight, innovation, brand building, and capital investments mostly focused in the U.S., and mergers and acquisitions mostly focused on the U.S."
Canopy reported cash and short-term investments of about $1.59-billion in its latest quarterly earnings that ended Dec. 31, 2020. Elsewhere, Aphria and Tilray are about to merge,
and Hexo is set to acquire Zenabis Global. As well, a British American Tobacco unit recently acquired a 19.9-per-cent interest in Organigram Holdings. Canadian pot players are eyeing the U.S. market, which is valued at $35-billion (U.S.) by 2025.
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