Canopy Growth Corp. said Friday it plans to seek approval from shareholders for a plan to close its acquisitions of cannabis-touching, U.S.-based businesses.
The new structure would allow the company to retain its Nasdaq listing, Canopy Growth said.
plans to report the financials of Canopy USA on a deconsolidated basis as a “non-controlling interest” in Canopy USA.
The Canadian cannabis company said it expects to file a definitive proxy with the SEC for Canopy USA on or about Feb. 13 for an April 12 shareholder vote on the structure.
“Canopy USA is advancing and following our shareholder vote will be able to move forward with completing its acquisitions of Jetty, Wana, and Acreage,” said CEO David Klein, in an emailed statement.
Klein was referring to the U.S. THC businesses Jetty extract, Wana edibles, and Acreage cannabis, which will be combined with Canopy Growth’s 17% stake in TerrAscend
Canopy Growth said the Canopy USA structure would satisfy Nasdaq requirements, which for now prohibit plant-touching companies to list on their exchanges because cannabis remains a Schedule I drug under federal law.
A Canopy Growth spokesperson said the company does not need cannabis to be rescheduled for the deal to go through and that the Canopy USA structure was designed based on existing rules.
It isn’t immediately clear if the Securities and Exchange Commission has OK’d the plan.
In November, Canopy Growth disclosed the SEC would object to the deconsolidation of Canopy USA once Canopy USA acquires Wana, Jetty and Acreage, but that it was in talks with regulators to resolve the issue.
Canopy announced the Canopy USA news as it reported earnings for its fiscal third quarter.
Canopy Growth’s stock fell by 1% in premarket trading.
Canopy Growth is backed by U.S.-based spirits giant Constellation Brands Inc.