SMITH FALLS, Ont. — Canopy Growth Corp. has signed a deal to amend the terms of its agreement to acquire U.S. company Acreage Holdings Inc. that it signed last year.

The Canadian cannabis company struck an agreement in April 2019 to buy Acreage if cannabis production and sale became federally legal in the United States.

Under that deal, Canopy had agreed to pay 0.5818 of a Canopy share for each Acreage share.

As part of the changes, which include an up-front payment for Acreage shareholders and certain convertible security holders totalling US$37.5 million or about 30 cents US per share, Acreage shareholders will receive 0.7 of a fixed share and 0.3 of a floating share for each Acreage share they hold.

Once the cannabis laws change in the U.S., Canopy has agreed to swap 0.3048 of a Canopy share for each fixed Acreage share. Canopy will also have the option to buy the floating Acreage shares for a price equal to their 30-day volume weighted average trading price, subject to a minimum of US$6.41 per share, payable in either cash or shares at Canopy’s option.

In connection with the new deal, Acreage chief executive Kevin Murphy announced he was resigning as chief executive, but will continue as chairman of the board of directors. Director Bill Van Faasen, former chairman, CEO and president of the Blue Cross Blue Shield of Massachusetts, will serve as Acreage’s interim CEO.

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