Canopy Growth On The Move In California
May 24, 2022Smiths Falls, Ontario-based Canopy Growth has entered an agreement to acquire Oakland, California-based Jetty Extracts for approximately $69 million. Jetty produces both cannabis extracts and vape technology. The agreement provides for Canopy to acquire 100% of outstanding Jetty stock, contingent on federal legalization in the U.S.
Founded in 2013, Jetty has made a name for itself in its native market for its focus on products without fillers or cutting agents. Last year it launched its solventless vape and concentrate collection made with just ice, water, heat, and pressure; it now holds a 75% market share in the solventless subcategory. That sort of presence in the largest cannabis market worldwide will be a major advantage for Canopy Growth when it’s able to expand to the U.S. in earnest.
Under the terms of the deal, Canopy will make aggregate upfront payments covering the $69 million sticker price in a combination of cash and stock for a stake of approximately 75% of Jetty. An additional payment will be made upon exercise of the right to acquire the remaining 25%.
“Canopy Growth is building a house of premium cannabis brands with a focus on the core growth categories that will power the market’s path forward, now including Jetty,” said Canopy Growth CEO David Klein. “There are significant opportunities for Jetty to scale at the state level across the U.S. by leveraging Canopy’s U.S. ecosystem, and we’re actively working on plans to bring the brand to the Canadian recreational market.”
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