Benefits of Acreage-Canopy Growth Transaction

Benefits of Acreage-Canopy Growth Transaction

Benefits of the proposed Amended Arrangement with Canopy Growth

We anticipate several benefits from the proposed Amended Arrangement, including but not limited to

  • Preserving Shareholder Value and providing Acreage with the greatest chance of success relative to the alternatives available to it in the context of the Existing Arrangement
  • Aggregate Amendment Option Payment of US$37,500,024 to the Shareholders, the High Street Holders and the USCo2 Holders, with the amount that each such holder is entitled to receive estimated to be approximately $0.30 per Existing SVS (assuming the conversion or exchange of such Eligible Securities for Existing SVS) based on the number of outstanding Existing Shares as of the date hereof
  • Potential Upside with Floating Shares could produce a more attractive Shareholder return as compared to the Existing Arrangement
  • Canopy Growth Loan to Hempco anticipated to provide Acreage with the necessary financing for Hempco’s operations in the US hemp-derived CBD market
  • Management Service Agreements in the event that Canopy Growth acquires, or conditionally acquires, a competitor of Acreage in the United States, Canopy Growth, as a condition to completing such transaction, will require the Target Cannabis Operator to enter into a Management Service Agreement with Acreage on terms acceptable to Acreage
  • Waivers and Consents Obtained under Existing Arrangement enabling Acreage to sell all or substantially all of the assets of Acreage or its Subsidiaries situated or located outside of the Identified States and sell particular real property
  • Public affirmation by Canopy Growth that Acreage is Canopy Growth's vehicle for an accelerated pathway into the United States once federally permissible
  • Increased royalty income from aggressively pursuing further promotion of Canopy Growth products and brands, which will produce additional income opportunities for Acreage

 

For additional information with respect to these and other ‎anticipated benefits of the Amended Arrangement together with the potential risks, potential negative ‎factors and potentially adverse implications relating to the Amended Arrangement, see the sections in the proxy statement and management information Circular entitled “The Amended Arrangement – Reasons for the ‎Amended Arrangement” and “Risk Factors”. See also “Cautionary Note Regarding Forward-Looking Information” in the proxy statement and management information circular.