I guess this adds more to takeover theory......

I guess this adds more to takeover theory...

http://www.baystreet.ca/articles/heard_on_the_street.aspx?id=1162

This line is my fave...

"Mettrum made a deal to ship product to Australia this summer"


Canopy Growth’s New Acquisition Would Give it Half Canada’s Marijuana Market
Canopy Growth Corp (TSX:CGC) has been making headlines for weeks now, as investors piling in and out of the stock has caused the company to be one of the most volatile on the Toronto Stock Exchange.

Now the company is making headlines for a different reason. Fresh after agreeing to pay up to 1.2 million shares to acquire a German marijuana dispensary, the company is looking to make another acquisition. Canopy announced this morning it has offered to acquire Mettrum Health Corp (TSXV:MT) for $430 million in an all-stock deal.

Mettrum shareholders will receive 0.71 Canopy shares for every share they own, valuing their shares at $8.42 each. Mettrum shares closed at $5.92 after Wednesday’s trading. Shareholders for both companies will vote on the acquisition during special meetings in January, but Mettrum’s management team--who collectively own about 15% of the company--have already indicated they’ll vote yes.

Adding Mettrum’s assets would make Canopy Canada’s leading marijuana grower, with control of approximately half of our current medical marijuana market. The big prize is the eventual legalization of cannabis in Canada for all users, which should happen sometime in 2017 or 2018.

Estimates are a fully-legal recreational cannabis market in Canada could be worth up to $22 billion annually, although most think $8 to $12 billion is more realistic. Still, that’s very lucrative.

Both Canopy and Mettrum have been expanding internationally, too. Canopy has agreements to ship its product to both Brazil and Germany, while Mettrum made a deal to ship product to Australia this summer