Canopy acquisition of Acreage would be 'big positive,' says Jefferies
Canopy Growth, according to reports last night, is set to acquire the rights to acquire one of the largest U.S. multi-state operators, Acreage Holdings, Jefferies analyst Owen Bennett tells investors in a research note. While details of the locked in purchase price are still not known, with Canopy sitting on C$4B of cash and the U.S. being the world's biggest market, this move is a "big positive," says Bennett. If Canopy were to wait to acquire a U.S operator post its listing requirements permitting, the price paid would be "way ahead of whatever has been agreed right now," he points out. Bennett has a Hold rating on Canopy Growth with a C$64 price target. The stock in premarket trading is up 7%, or $2.91, to $45.76.