Canopy Growth Completes US Integration of Wana and Jetty

The TDR Three Key Takeaways regarding Canopy Growth and Wana:

  1. Canopy Growth’s US integration of Wana and Jetty is a foundation for US expansion.
  2. Wana’s commitment to innovation strengthens under Canopy Growth.
  3. Canopy Growth’s strategic acquisitions are aimed at operational synergies.

Canopy Growth Corporation (NASDAQ: CGC) has confirmed that its subsidiary, Canopy USA, LLC, has exercised options to acquire leading cannabis brands Wana and Jetty. This acquisition is a foundational piece of Canopy Growth’s US expansion. This integration will help Canopy focus on enhancing its revenue streams and cost-efficiency within the Canopy USA ecosystem.

The company’s expansion into the US has brought numerous updates and changes this year and has significantly influenced its stock price, which has risen 103% since the start of 2024. Earlier in the year, the company’s shareholders approved a new class of exchangeable shares, a key part of its US entry strategy under Canopy USA. Additionally, Canopy Growth has garnered considerable support from Constellation Brands, which has converted a $100 million promissory note into exchangeable shares. This action has strengthened Canopy Growth’s financial foundation and aligned it with its US expansion goals. Earlier this week, Canopy announced it had raised $50 million to stabilize its finances and support its ongoing expansion.

CEO David Klein commented on the acquisitions, emphasizing the integration of Wana and Jetty into the Canopy family. “It will be run as an autonomous company, but it is part of the Canopy family economically. So our shareholders get exposure to it,” stated Klein, highlighting the advantage for shareholders. The timing comes amid optimistic regulatory changes in the U.S., which could further facilitate the company’s growth and operational expansion.

Wana, known for its cannabis edibles and strong market presence in Colorado, is expanding its licensing operations across several states, reflecting its growth strategy and commitment to innovation. The president of Wana Brands, Joe Hodas, expressed his determination to continue the legacy of the brand’s founder, Nancy Whiteman. “Taking the reins from Nancy is both an honor and a huge challenge. She’s built an unparalleled legacy, and I am committed to guiding Wana with the same integrity, innovation, and passion that she has instilled in all of us,” Hodas shared, acknowledging the substantial responsibility of his new role. Whiteman’s fortune largely derives from her $350 million sale of Wana to Canopy Growth in 2021; she and her husband started this company with a capital of $50000 dollars and started from her kitchen. Without outside funding, Wana conducted market research by visiting dispensaries to see what was popular. 

Meanwhile, Jetty, which specializes in premium cannabis extracts and vape technology, is a leader in California’s cannabis sector. The acquisition of Jetty and Wana is subject to customary closing conditions, including regulatory approvals. Once finalized, Canopy USA will acquire complete ownership of Wana and about 75% of Jetty. 

The integration of these companies under the Canopy umbrella is expected to create significant financial and operational synergies,, enhanced scalability, and market reach. Canopy Growth’s approach to managing its acquisitions as independent entities while aligning them under a unified strategic framework allows for brand autonomy alongside shared growth benefits.

The acquisitions of Wana and Jetty by Canopy USA, LLC signify an expansion phase for Canopy Growth, aimed at establishing a strong market presence and driving long-term shareholder value through strategic brand expansion and operational efficiencies. Want to keep up to date with all of TDR’s research and news, subscribe to our daily Baked In newsletter.

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