Canopy Growth Corporation (TSX:WEED) (NASDAQ:CGC) and Acreage Holdings, Inc. (CSE:ACRG, ACRG.B.U))(OTCQX:ACRHF, ACRDF)) announced Monday that Canopy USA, LLC will complete its acquisition of Acreage on or around Dec. 9, 2024.

The Canadian cannabis giant announced its plans to acquire Acreage for $3.4 billion in 2019. Initially, the deal was to be undertaken should the U.S. legalize marijuana on a federal level. That deal was later restructured.

The deal outlined the plan to acquire all Class E subordinate voting shares of Acreage. This acquisition will follow the purchase of the Class D shares of Acreage, based on an agreement from October 24, 2022. After both acquisitions are completed, Canopy USA will own all shares of Acreage.

Acreage pointed out in November that the move could leave holders of Acreage's Class E shares (fixed shares) with nothing if Canopy's stock price remains below $5 when the deal closes.

Canopy Growth's shares traded 6.71% lower at $3.545 per share at the time of writing on Tuesday December 3. Acreage's shares traded 11.63% higher at $0.12 per share.

Canopy USA – Canopy Growth's strategy for capturing the U.S. cannabis market – was created in 2022. A new U.S.-domiciled holding company is set to streamline the company's entry into the US market by allowing it to acquire Acreage as well as two other cannabis companies – Wana Brands and Jetty – while also holding a minority stake in TerrAscend. Corp. (TSX:TSND) (OTCQX:TSNDF).

Canopy USA completed its acquisition of Wana in October, and roughly 75% of the shares of cannabis edibles producer, Lemurian, Inc. (Jetty) as announced in June 2024.

Canopy Growth's newly appointed CEO Luc Mongeau, who succeeds David Klein effective Jan. 6, 2025, will continue his legacy by expanding the company's influence in the U.S.