Article by The Canadian Press via Huffington Post
Marijuana producer Canopy Growth Corp. is offering to buy Mettrum Health Corp. in a friendly all-stock deal valued at $430 million.
According to a report at the Financial Post, the new combined company would have 39,730 medical marijuana customers, or nearly half of the total customer base.
Construction and marijuana companies are poised to benefit from the Liberal Party’s decisive win in Canada’s election, with leader Justin Trudeau vowing to fund infrastructure spending with deficits and legalize cannabis.
Mettrum shareholders will be entitled to receive 0.7132 of a common share of Canopy under the offer, which would create a company with six facilities licensed to produce medical marijuana products.
Canopy’s offer values Mettrum shares at $8.42 — $2.50 above the closing stock price Wednesday.
Assuming the deal gets shareholder approvals at both companies, Mettrum will become a wholly owned subsidiary of Canopy and Mettrum shareholders will own about 22.3 per cent of the combined company.
Mettrum’s board has agreed to pay Canopy a $10-million termination fee under certain circumstances if the deal doesn’t go through. Canopy will also have the right to match a superior proposal from a rival buyer.