New York hemp company lands $100 million in acquisition restructuring plan

Multistate marijuana operator Acreage Holdings is getting $100 million to shore up a hemp-focused subsidiary, part of a restructuring announced Thursday with Canadian marijiana giant Canopy Growth Corp.

Canopy announced plans to acquire Acreage last year. The restructuring includes a loan from Canopy so that Acreage’s hemp subsidiary, called Acreage Hempco, can “participate in the burgeoning CBD market,” Canopy said in a statement.

Canopy will charge Acreage Hempco 6.1% annual interest for the loan, which will be disbursed in two payments, according to the announcement.

Acreage grows and sells both hemp and marijuana in the U.S. The loan specifies that Acreage can’t use Canopy’s $100 million on marijuana “unless and until such operations comply with all applicable laws of the United States.”

Acreage is based in New York and trades on the Canadian Securities Exchange as ACRG.U and on U.S. over-the-counter markets as ACRGF. Canopy’s shares trade on the New York Stock Exchange under the ticker symbol CGC and on the Toronto Stock Exchange as WEED.

Read more about the restructuring deal here.

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