Canopy Growth Gets Call Option To Acquire Up To 100% Of Equity Interests In Jetty

(RTTNews) - Canopy Growth Corp. (WEED.TO, CGC) and Lemurian, Inc. or Jetty, have entered into agreements providing Canopy Growth, by way of a wholly-owned subsidiary, the right to acquire up to 100% of the outstanding capital stock of Jetty, a cannabis brand in California.

The agreements are structured as two separate option agreements whereby Canopy Growth has a call option to acquire Jetty. Canopy Growth will make aggregate upfront payments in the amount of approximately $69 million payable through a combination of cash and Canopy Growth common shares, a majority of which will be Canopy Growth common shares, in exchange for approximately 75% of the equity interests in Jetty.

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, also to be satisfied through a combination of cash and Canopy Growth common shares.