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News Alert: Canopy Growth Strikes Deal To Buy Edibles Maker Wana Brands For $298 Million

October 14, 2021

Canada’s Canopy Growth Corp has agreed to purchase Colorado-based edibles maker Wana Brands for $297.5 million, contingent upon federal legalization of cannabis in the U.S. Wana claims to be the U.S. market leader in the edibles category, and is known for its cannabis gummies, which sell in a variety of flavors and strengths, including options like Appletini Hybrid, Colorado Sunrise Sativa, and Island Punch Indica, with a 10-pack of gummies each with 10mg THC retailing at around $17.

Wana produces and sells edibles itself in its home base of Colorado, and has license agreements across a dozen states, plus Canada, with plans to be present in 20 states by the end of next year. “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 of Canopy Growth. “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.”

The gummies category has emerged as a fast-growing segment in both the U.S. and Canada, accounting for more than 71% of all edibles purchased, according to Headset data. Canopy says it expects edibles to continue serving as “a primary entry point for new consumers into the THC category.”

The proposed deal for Wana mirrors a similar arrangement Canopy has in place to acquire U.S. multi-state operator Acreage Holdings upon federal legalization. Unless and until Canopy exercises its right to acquire Wana, it will have no economic or voting interest in the Colorado company, which will continue to operate independently.—Daniel Marsteller

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