Canopy Growth agrees to buy California vape company Jetty Extracts if U.S. goes legal

Canopy Growth Corp. CGC, +5.01% WEED, +4.60% said Wednesday it agreed on two call options to acquire control of California-based Lemurian Inc., which does business under the name Jetty Extracts. The two companies will continue to operate independently until Canopy exercises its acquisition rights for the cannabis vape technology and extracts company. Canopy Growth pay about $69 million in cash and common shares in exchange for roughly 75% of the equity interests in Jetty, subject to adjustments. Upon exercise of the rights to acquire up to 100% of the equity interests in Jetty covered by the first option agreement, Canopy Growth will make an additional payment. Canopy Growth did not disclose the dollar amount of the second payment. Canopy Growth said it’s the latest U.S. company to ink a deal upon U.S. legalization after its $3 billion acquisition plan for Acreage ACRHF, +10.20% in 2019 and Wana Brands for $298 million in late 2021. Canopy Growth also holds a significant conditional ownership interest in TerrAscend Corp. TRSSF, +2.75%. Canopy Growth shares are down 32.3% in 2022 compared to a drop of 45.5% by the AdvisorShares Pure US Cannabis ETF MSOS, +2.74%.