DLA Piper represented Acreage Holdings in implementation of amended arrangement with Canopy Growth
On September 23, 2020, Canopy Growth Corporation ("Canopy Growth") (TSX: WEED) (NYSE: CGC) and Acreage Holdings, Inc. ("Acreage") (CSE:ACRG.A.U, ACRG.B.U) announced the implementation of Acreage’s previously-announced amended arrangement under section 288 of the Business Corporations Act. DLA Piper was Acreage’s Canadian counsel on this matter in addition to advising on the original arrangement, a ground breaking transaction in the North American cannabis industry.
The amended arrangement provides for the creation of new Class E subordinate voting shares (“Fixed Shares”), Class D subordinate voting shares (“Floating Shares”) and Class F multiple voting shares ( “Fixed Multiple Shares”). In connection with the Amended Arrangement; (i) Acreage amended an existing US$21 million credit facility; and (ii) a Canopy Growth subsidiary advanced US$50 million to Universal Hemp, LLC, an Acreage subsidiary, pursuant to the terms of a secured debenture. An additional US$50 million may be advanced pursuant to the debenture subject to the satisfaction of certain conditions.
Additionally, Canopy Growth and Acreage amended and restated their intellectual property license agreement.
For further details you may read the full press release here.
The DLA Piper team was led by Robert Fonn and Russel Drew and included Campbell Fitch, Sydney A. Kert, Christopher Pejovic, Jamie Mandell, Ashton Wiebe (Capital Markets & Securities, Corporate), Kevin Fritz (Tax), Brent MacLean, Samuel Bogetti (Litigation), Ilia Danef, Veronica Monteiro (Finance) and David Spratley (IPT).
DLA Piper’s CBD and International Cannabis practices cover the full range of corporate, intellectual property, technology and R&D, employment, regulatory and litigation matters. We're advising in every segment of the pharmaceutical, biopharmaceutical, wellness and medicinal sectors around the world.
