SMITHS FALLS, ON, Jan. 14, 2021 /CNW/ – PRESS RELEASE – Canopy Growth Corporation has announced that the company has filed an early warning report under National Instrument 62-103 in connection with the acquisition of an option to purchase 1,072,450 common shares of TerrAscend Corp., conditional upon the occurrence or waiver of amendments to federal laws of the United States to permit the general cultivation, distribution and possession of marijuana (as defined in 21 U.S.C 802) or to remove the regulation of such activities from the federal laws of the United States. Upon the occurrence or waiver of the triggering event, the company may exercise the option and pay the balance of the purchase price in order to acquire the common shares subject to the option.
On Jan. 13, 2021, the company entered into an agreement with an existing shareholder of TerrAscend to acquire the option for aggregate consideration of approximately US$10.5 million. The acquisition of the option resulted in an increase in the company’s interest in the common shares of approximately 0.7% on a partially diluted basis. In addition, since the previous early warning report filed by the company, the company has acquired beneficial ownership, control or direction over 22,474,130 common share purchase warrants (together with the acquisition of the option, the “acquisitions”), representing an increase in the company’s interest in the common shares of approximately 10.9% on a partially diluted basis.
Immediately prior to the acquisitions, the company beneficially owned, and exercised control or direction over, 38,890,570 exchangeable shares of TerrAscend, representing 100% of the issued and outstanding exchangeable shares on a non-diluted basis and approximately 29% of the issued and outstanding common shares on a partially-diluted basis, assuming the conversion of the exchangeable shares into common shares following the occurrence or waiver of the triggering event.